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ASIA:
Moody’s Investors Service on Tuesday slashed India’s growth forecast for the current financial year to 9.3 per cent saying that the second wave of coronavirus infections hampers economic recovery and increases risk of longer-term scarring. With this, Moody’s has joined several analysts who revised their GDP forecasts for India in the face of a second wave of COVID-19 infections in the country. Revising its projections for India’s GDP growth, Moody’s said that the second wave of COVID-19 is expected to be less disruptive than the first wave. The rating agency also ruled out any chances of a rating upgrade in the near future. Instead, it warned against self-reinforcing economic and financial risks as they may put more pressure on the rating.
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ASIA:
China’s new five-year plan, made public on Friday, called tech development a matter of national security, not just economic development, in a break from the previous plan. China is freeing up tens of billions of dollars for its tech industry to borrow. It is cataloging the sectors where the United States or others could cut off access to crucial technologies. The plan pledged to increase spending on research and development by 7 percent annually, including the public and private sectors. That figure was higher than budget increases for China’s military, which is slated to grow 6.8 percent next year, raising the prospect of an era of looming Cold War-like competition with the United States.
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