'Threat to India's growth', moody's warning amid US tariffs!
The forecast of international rating agency moody's on wednesday has further increased the concerns of countries around the world including India. The agency reduced the growth rate of the indian economy in the year 2025 from its previous estimate of 6.5 percent to 5.5 percent. In February, the growth rate was estimated at 6.6 percent. In its estimate, moody's said that business and investment will be affected due to the looming global recession due to US tariffs.
moody's further said in its report that global trade will be affected due to tariff and trade tensions, regional exports will decrease and this will hurt business. Also, investment in the Asia Pacific region will decrease. The rating agency said that US tariffs will weaken the debt situation and increase the risk of default, especially for low-rated companies. This will worsen the global debt situation due to the unexpected US trade policy and the pace of growth will slow down due to the macroeconomic impact. Also, the possibility of recession will increase.
Growth will slow down
Moody Ratings said in a report, "The biggest risk from tariffs is to the non-financial corporate sectors. Companies with low ratings will be affected by their dependence on debt markets. For most banks and sovereign countries, the risks are indirect through economic weakness." This forecast from moody's comes after tariff rates on countries around the world were braked for 90 days and reduced to 10 percent and 145 percent on China. Now on april 16, it has been further increased to 245 percent.
Global concern will increase
Moody Ratings said, "The tariffs have shaken the financial markets and increased the risk of a global economic recession. Continued uncertainty will hinder business planning, halt investment and impact consumer sentiment." The agency said that while this 'pause' will give businesses more time to adjust production and sourcing, the lack of clarity on duty arrangements after 90 days will hamper business planning, deter investment and slow growth.
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