India has emerged as the brightest spot in the Asia Pacific region as reforms have picked up pace in the country in recent months, says a recent report by Standard & Poor’s Ratings Services.
"India has been the region’s brightest spot since our last report. After a modest beginning, Prime Minister Narendra Modi’s government has picked up the pace of reform, eliminating the diesel subsidy in early November, liberalising foreign investment into the insurance sector, and curbing discretionary government spending for the second half of the current fiscal year," S&P said.
Emphasising on the credit conditions in North America, the Asia-Pacific region, Latin America and Europe, the credit rating agency said that confidence has improved and growth momentum is now at around seven per cent.
"Our issuer ratings outlook eased slightly to a net negative bias of 11 per cent at the end of October, in line with receding concerns about India. However, the ratio remains high compared to other regions. Cyclical industries such as transportation, building materials, chemicals, real estate development, and capital goods have above-average negative biases," the agency said.
Owing to the China’s sluggish growth, some Asia-Pacific economies will witness less growth in the end of 2014. China’s property sector has triggered turmoil in the financial sector whose affect is expected to spread beyond China.
"Against this backdrop, we see the credit cycle continuing to adjust to slower economic prospects, as well as high household and corporate debt in several countries weighing on some sectors’ credit outlooks," it said.