S&P Global Ratings hopeful of economic growth coming back to pre-demonetisation levels

S&P Global Ratings has said Indian economy is finally moving past the effect of demonetisation, and its growth will swing back to the pre-demonetisation level. However, a clearer picture of the economy will be available only by June-end.

"India's effects from demonetisation are fading and a return to the growth path prevailing before the currency note swap looks to be increasingly likely. This should be a two-quarter event, meaning things will become clear by mid-2017," S&P said in a statement.

Last month, the Central Statistical Office (CSO) had projected that India’s GDP growth will be 7% in the October-December quarter, which would have clearly meant a slowdown. For the complete fiscal, the growth was projected at 7.1%.

Also read: Government to attract $62 billion investment from Indian and foreign companies

The US-based company has pegged China’s GDP growth forecast for 2017 at 6.4% , while for Japan, it has been estimated to be 1.3%.

However, S&P has also released a list of things that could go wrong for APAC nations. These include US-China trade relations, a possibly faster pace of US Federal Reserve rate hikes and their effect on capital flows, along with the rising geo-political tension.

(Image source: Vestnikkavkaza)