As per the global rating agency Standard & Poor's (S&P), India’s economy to grow by 6 percent in the current fiscal, however, cautioned that a weaker global risk appetite and poor monsoon would pull down growth to around 5 percent. The rating agency's projection is lower than the Government's estimate of 6.1-6.7 percent growth, while, it is higher than RBI's projection of 5.7 percent for FY14. For FY15 and FY16, S&P projected the economic growth to pick up at 6.7 percent and 7 percent respectively.
Regarding the Asia Pacific economic growth, S&P said in its report that growth in most of the Asian region will hold steady or even pick up slightly in 2013 and 2014, after having slowed sharply in the first half of 2012. The upside potential for the region is characterised by a stronger than expected global recovery, boosting trade and growth in Asia. By adding further, it said that Asia Pacific witnessed positive economic trends in the second half of 2012, while India remained the only country that saw falling growth during the period.
The rating agency said that growth and exports generally picked up in the second half of 2012 on the back of more positive global developments, especially in the US. Referring to the Euro-zone crises, it said that the euro zone's debt crisis continues to be a key risk for global credit conditions in 2013 and 2014 as the European economic engine continues to falter. Further, S&P forecasted that the Euro zone stays in recession this year followed by anemic recovery in 2014, instead of in the second half of this year.
