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