Economic growth at 7.8%, oil price rise a dampener: S&P Global Ratings

S&P believes that heightened market risk could also pull capital out of Asia's emerging markets, hitting currencies, and raising funding costs.

Rising oil prices may dampen economic growth and cause a sizeable current account deficit (CAD) in large energy-importing countries like India, S&P Global Ratings said on Wednesday.
 

The ratings agency retained India’s economic growth at 7.8 per cent for FY23. It said that high inflation, weaker demand and increased uncertainty arising from the Russia-Ukraine conflict may slow the economic and fiscal recoveries much more than currently expected for many countries.
 

S&P revised its forecast for average Brent crude prices for 2022 to $85 per barrel from its prior assumption of $75. Crude oil prices have been on a boil with