Press Esc to close
Sunday 26 October 2014
News updated at 1:07 AM IST
Weather
Max: 27°C
Min : 19.2°C
In Bangalore
Generally cloudy

S&P expects India's economic growth at 6.5% in 2013

New Delhi, Dec 21, 2012 (PTI)
File Photo

Global rating agency Standard and Poor's (S&P) has said it expects India to grow by 6.5 per cent during 2013, amidst the possibility of global economic recovery continuing during the year.

For China, S&P expects the growth rate to move back to eight per cent level in 2013, after it slipped to 7.4 per cent in the third quarter of 2012.

In a report on global credit outlook for 2013, S&P said that "the ball is in the policymakers' court" to sustain the recovery in global economy.


Noting that there is "not much room for error in the global economy" in 2013, the S&P economists said it has been through a very challenging period in the recent years.

This included "the near total collapse of the financial system in 2008 and the very deep global recession that followed at the end of 2008 and the first half of 2009."

"The global economy started recovering in mid-2009, and that recovery at a global level has pretty much continued. We expect it to continue into 2013, but it is a fairly precarious situation.

"Precarious because the recovery process--the healing, deleveraging, balance sheet recovery, and economic recovery--is still working its way through the system," Standard & Poor's Chief Global Economist Paul Sheard said.

Sheard said that S&P expects a "soft landing" in China, while its forecast for India is a 6.5 per cent growth in 2013.

"We have one major economy continuing to recover in our base case scenario. We see China going through a so-called soft landing. What it means is that China was growing at a very rapid pace--sometimes too rapid--after the financial crisis.

"Average year-on-year growth since the third quarter of 2008 has been 8.9 per cent though it's ticked down a bit this year. Chinese policymakers needed to rein in an overheating economy," Sheard said.

During the process, the growth has decelerated from 12 per cent at one point to 7.4 per cent in the third quarter of this year, he said adding deceleration of the Chinese economy is probably bottoming out and growth will probably move back closer toward 8 per cent entering 2013.

S&P said that it expects rating stability and even some positive trends in the emerging world, while the global growth will also be positive next year at little under 3 per cent.

The rating agency said that many emerging Asian economies are using their growth productively to strengthen their infrastructure —- and thereby increase long-term growth potential -- while still maintaining manageable debt burdens.

"So we could see some upgrades in parts of the emerging world," it said, without naming the countries.

Go to Top

Photo Gallery
Mrs. Komal Kalra Pagarani who is all set to represent India...

Mrs. Komal Kalra Pagarani who is all set to represent India...

Fire at Balaji Studio Killick Nixon Studios in Mumbai...

Fire at Balaji Studio Killick Nixon Studios in Mumbai...

Sikh religious warriors, display their horse-riding skills at an event organized to celebrate...

Sikh religious warriors, display their horse-riding skills at an event organized to celebrate...

Bollywood actor Shatrughan Sinha with his family during Amitabh Bachchan's Diwali party in Mumbai..

Bollywood actor Shatrughan Sinha with his family during Amitabh Bachchan's Diwali party in Mumbai..

Sachin Tendulkar and his wife Anjali with Abhishek Bachchan during Bachchans' Diwali party...

Sachin Tendulkar and his wife Anjali with Abhishek Bachchan during Bachchans' Diwali party...

Narendra Modi clicks photographs during the Diwali Mangal Milan programme at BJP headquarters...

Narendra Modi clicks photographs during the Diwali Mangal Milan programme at BJP headquarters...

Nitin Gadkari leaves after meeting RSS Chief Mohan Bhagwat at RSS headquarters in Nagpur...

Nitin Gadkari leaves after meeting RSS Chief Mohan Bhagwat at RSS headquarters in Nagpur...

Brother & Sister take holy dip in river Yamuna on the occasion of Bhai Dooj...

Brother & Sister take holy dip in river Yamuna on the occasion of Bhai Dooj...

Dhoni talks to Hockey India player Ashunta Lakra during launch of hockey team in Ranchi...

Dhoni talks to Hockey India player Ashunta Lakra during launch of hockey team in Ranchi...

Brother of Thailand's Prime Minister Payap Shinawatra takes part in Robe...

Brother of Thailand's Prime Minister Payap Shinawatra takes part in Robe...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523