Malaysia's economic growth in the second quarter of 2023 was the slowest in nearly two years due to sliding exports and a global slowdown, prompting the central bank to warn of lower full-year growth and the possibility of the target being hard to reach.
The US economy shows signs of slowing towards the end of summer, with the services-sector index falling to a six-month low and the manufacturing-sector index remaining in negative territory, suggesting a near-stall in business activity and raising doubts about the strength of economic growth in Q3.
India's economic growth likely accelerated to 7.7% in the April-June quarter, driven by strong service sector growth, high demand, and increased government capital expenditure, according to a Reuters poll.
Nigeria's economy experienced faster growth in the second quarter of 2023, driven by the services sector, although the growth rate was lower than the previous year due to challenging economic conditions.
India's economy is experiencing consistent growth, and is predicted to become the fourth-largest economy within 18 months and the third-largest by 2028, driven by strong fundamentals and infrastructure development, while successfully reducing poverty; however, further reforms in areas such as patents, judicial, administrative, and process reforms are needed to boost economic growth.
India's economy grew at its fastest pace in a year in the April-June quarter, driven by services and manufacturing, though economists warn of a slowdown ahead due to factors like rising food prices and slowing global growth.
The global economy is expected to slow down due to persistently high inflation, higher interest rates, China's slowing growth, and financial system stresses, according to Moody's Investors Service, although there may be pockets of resilience in markets like India and Indonesia.
U.S. job growth likely slowed in August due to factors such as striking actors and a major trucking company bankruptcy, but the unemployment rate is expected to remain low; economists caution against overreacting and advise focusing on long-term trends.
India's GDP growth reached a four-quarter high of 7.8% in Q1FY24, with private consumption and services picking up pace, but challenges lie ahead with the sustainability of services growth and concerns over the monsoon and agriculture sector.
Foreign portfolio investment inflows into the Indian markets slowed down in August due to concerns about rate hikes in the US, resulting in higher bond yields and a stronger dollar, but India remains an attractive market for investors compared to other emerging markets.
China's services sector experienced a slowdown in business activity, resulting in the lowest level in eight months, as weaker foreign demand and sluggish overseas orders impacted consumption, despite economic stimulus efforts.
India's industrial output rose 5.7% in July, its fastest pace in five months, driven by strong mining and electricity activity, but high inflation and slowing pent-up demand may hinder future growth.
The latest PMI data shows a contraction in developed markets, while emerging markets continue to grow, albeit at a slower pace, indicating overall solid performance in the third quarter of 2023. However, new export orders for emerging market manufacturing contracts at a slower rate, and India remains a bright spot amid the global headwinds.
With the right reforms, India has the potential to become the next engine of global growth, benefiting from major economic re-alignments caused by China's slowdown and the US diversifying its supply chains. Major corporations are already investing in India, recognizing its potential. However, India needs to overcome challenges such as high tariffs, infrastructure improvements, and regional cooperation to fully realize its manufacturing potential and attract foreign investment.
U.S. business activity remains sluggish in September, with the services sector hovering at its slowest pace since February and new order activity hitting its lowest level of the year, according to a survey by S&P Global, which also indicated that job growth and consumer spending have held steady despite concerns over interest rate hikes and inflation.
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