Recession unlikely in Asia-Pacific region in 2023: Moody's

Mumbai: The Asia-Pacific region is unlikely to see a recession next year, but high interest rates and sluggish growth in global trade will continue to pose challenges for countries in the Asia-Pacific region, said a Moody's Analytics report.

The report has also noted that economic growth in India will be slow in the coming year. However, investment inflows will support productivity gains in technology and agricultural sector development.

If inflation in India remains high, the Reserve Bank will be forced to move the repo rate above 6 percent, which could have an impact on the economic growth rate, the report noted.

Moody's August report predicted India's economic growth rate to be 8 percent in 2022 and 5 percent for 2023. The economic growth rate of 2021 was seen at 8.50 percent.

A slowdown in global trade is slowing economies in the Asia-Pacific region. China is not the only weak link in the global economy. Exports from India declined significantly in value terms in October. However, compared to China, India is less dependent on exports for growth.

The economic development of other countries of Asia Pacific including India will be true, but due to the expected recession in Europe and North America, the year 2023 will be slow compared to 2022, the report has also noted.

Earlier, the International Monetary Fund also estimated the global economic growth rate for the current year at 3.20 percent and for 2023 at 2.70 percent.