Global rating agency Standard & Poor’s (S&P) latest report - 'Asia-Pacific Could Be Entering A Steady State Of Slower Growth', is likely to boost the sapping morale of the investors and the government, as it has said that the confidence level in India continues to grow amid indications of slower growth ahead for the Asia-Pacific region.
S&P stated that 'In India, confidence continues to rise despite concerns about investment quality. It added that our forecasts of 7.4 percent growth for 2015 and 8.2 percent for 2016 are the highest in the region.”
It was highlighted that China's property market correction continues to be the region's main risk, with growth forecasts for China in 2015 and 2016 remaining unchanged at 6.8 per cent and 6.6 per cent respectively, with the risks still slanted toward the downside. The report also said that the incipient recovery in the US, particularly for durable goods consumption, has yet to lead to a sustained export bounce in Asia-Pacific.
The report however stated that the Asia-Pacific growth story is not all gloom and doom and the pace of activity is picking up in Japan, the agency said it has raised its forecasts to 0.9 per cent for 2015 and 1.3 per cent for 2016.
