Asia-Pacific Region 2023 Recession Not Likely: Report

In the next year, a slowdown is likely in the Asia-Pacific region, according to Moodys Analytics . The region will be hit by headwinds from higher interest rates and slower global trade growth .

New Delhi: In the next year, a slowdown is likely in the Asia-Pacific region, although the region will be hit by headwinds from higher interest rates and slower global trade growth, according to Moodys Analytics.On the plus side, increase in external investment and productivity gains in agriculture as well as in the APAC region could accelerate growth.However, if inflation persists, the Reserve Bank of India would likely raise its repo rate to 6 percent, slowing growth in the Asia-Pacific region by 2022 and to 5% in 2023, down from 8.8 percent in 2021, according to Moodys.Industrial production has remained relatively stable for the time being, especially after Russia's invasion of Ukraine in February.

In October, Asia's other great economy, India, saw a decrease in value exports year after year.However, Moodys Analytics Chief APAC Economist Steve Cochrane says that although India, as well as other major economies of the APAC region are expanding due to their own delayed reopening from pandemic-related shutdowns, the region is likely to see declines in 2023, as predicted by the World Monetary Fund (IMF), which forecasts growth rates of 6 percent to 3.2 percent in 2022 and 2.7 percent in 2023.

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