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S&P forecasts higher GDP Growth for India and China – higher oil price will not impact India’s mega growth
The world is suffering from higher oil price. But according to S&P, three Asian economies are not affected – India, China and Indonesia. The domestic and export based growth is so robust in India and China that growth may actually accelerate. That says one thing though – much higher oil price for the world as India and China are major oil consumers of the world along with United States.
According to PTI, India along with China and Indonesia may be the only "exceptions" among Asian economies to post an impressive growth in 2005 despite the adverse impacts of global oil price spiral, rise in interest rates and depreciation in US dollar, rating agency Standard and Poor's said today.
"GDP growth rates for many Asian economies in 2005 is likely to slow toward their medium-term trends, with some below potential. India and perhaps China and Indonesia, are the exceptions to lower growth in 2005," S&P said.
S&P rates India's foreign currency at "BB+" with a "stable" outlook, while it is "BBB+" for China and "B+" for Indonesia. However, S&P warned the Asian economies of the adverse impacts of global oil price spiral, rise in interest rates and a falling greenback.
"Chief among the risks will be the speed of interest and exchange rate adjustments, and duration of sustained high oil prices," S&P credit analyst Ping Chew said on the sidelines of ADB meeting here.
BIZ/FINANCE ARTICLES
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