US rating agency S&P Global Ratings said on Thursday that policy rate hikes in various countries and energy insecurity in Europe are adversely affecting the economic growth of almost every country.
The economic growth of almost every country is being adversely affected.
US rating agency S&P Global Ratings said on Thursday that policy rate hikes in various countries and energy insecurity in Europe are adversely affecting the economic growth of almost every country. He further said that but on the contrary, India’s economic growth rate is expected to be 7.3 percent in the current financial year and in this sense it will be a shining star in emerging market economies.
Growth to moderate in next few quarters: Report
S&P said in a report that the performance of global macroeconomic data, along with tightening financial conditions amid interest rate hikes by major interest rate hikes of various countries, are indicating a moderation in growth in the next few quarters.
According to the report, growth in all emerging markets moderated in the second quarter. This is because of the loss of people’s real incomes due to inflation, loss of business confidence and a more complex global environment. Central banks of emerging markets are ahead of developed countries in terms of raising policy rates. The era of raising interest rates in Latin American countries has now come to an end.
Core inflation (core) continues to rise in many countries. According to the report, this suggests that much more needs to be done to overcome this. A sharp increase in the policy rate by the US central bank Federal Reserve has increased pressure on the balance of payments in emerging markets.
S&P said that we have included 16 emerging economies except China. Their growth rate is estimated to be 5.2 percent this year. India will be the star in this case with a growth rate of 7.3 per cent in the current financial year (2022-23). The rating agency said that as central banks are aggressively raising interest rates to control inflation, we are losing confidence that they can avoid a major slowdown. He said that we now fear a slight recession in America. According to him, increasing interest rates, energy insecurity in Europe and the persistence of Kovid-19 are adversely affecting growth everywhere.
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