Ratings agency Fitch has lowered its 2012 growth estimate for emerging Asia, citing a global economic slowdown and policy tightening.
Fitch now forecasts the region’s GDP to grow by 6.8% in the next 12 months. Back in June, the agency expected the region to grow by 7.4% in 2012.
The lowered forecast reflects “the deterioration in the outlook for the world economy and the lagged impact of policy tightening in some countries, including the region’s two giants, China and India”.
The agency adds that emerging Asian sovereign’s creditworthiness is supported by a number of factors, such as a “relatively strong” medium-term growth outlook and improving public and external finances.
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