S&P Global Ratings on Tuesday said there were indications of a strong rebound in economic activity in India after the second wave of the pandemic waned, while it pared China’s growth forecast citing rising near-term uncertainty due to policy actions of the Asia’s largest economy and imminent default fears of real estate firm Evergrande.
The rating agency maintained its FY22 growth forecast for India at 9.5%, and cut estimates for China by 30 basis points to 8% for 2021, citing rising risks.
“The April-June period saw a steep contraction in activity on the back of a severe COVID-19 wave, but high-frequency indicators suggest a strong rebound over July-September. Households and micro and small enterprises were most affected in the latest downturn and will slow the recovery while they repair their balance sheets. Inflation remains relatively high, and public debt worries persist,” S&P said.