“India and Australia will lead growth among emerging and advanced markets on robust domestic consumption,” the report said. Australia’s GDP is estimated to grow by 2.3% in both 2026 and 2027.
Other emerging markets in the APAC region include the Philippines, Vietnam, Indonesia, Malaysia and Thailand. Advanced markets include Singapore, Korea, Australia and Japan.
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In another report released last week, Moody’s projected that India would remain one of the fastest-growing economies globally.
Across the broader APAC region, GDP growth is expected to remain steady, averaging 3.4% in 2026 compared with a projection of 3.6% for 2025, as per the latest report. It was 3.3% in 2024.”On a weighted average basis, emerging markets will drive GDP growth in the region, with average growth of 5.6% compared to average growth of 1.3% in advanced markets,” the report said.
It also pointed out the weakening of the Indian rupee against the dollar. Sectors such as oil & gas, airline and telecom are experiencing higher dollar-linked costs due to currency mismatches between rupee-based revenues and dollar-denominated inputs. However, most rated Indian firms are financially strong and equipped with sound risk-management strategies to navigate the situation.