New Delhi [India], October 25 (ANI): The International Monetary Fund (IMF) has predicted that India will continue to be one of the fastest-growing ’emerging market and developing economies’ in 2025-26, growing at a rate of 6.6%, according to the World Economic Outlook (WEO) report.<\/p>\n
This upward revision is attributed to strong economic performance in the first quarter, which has more than offset the effects of increased US tariffs on Indian goods.<\/p>\n
India is set to outpace China, which is expected to grow at 4.8%. The IMF released its revised projections following the effects of US tariffs across various economies and the subsequent deals made between countries amid growing uncertainty.<\/p>\n
However, the IMF has lowered its 2026 projection to 6.2%, citing a potential fading of first-quarter momentum.<\/p>\n
With the effects of tariffs lower than expected, the IMF projects global growth at 3.2% in 2025, while slowing to 3.1% in the following year. These projections, however, are still lower than the pre-policy-shift forecasts.<\/p>\n
Inflation is projected to continue to decline globally, though with variation across countries: above target in the United States–with risks tilted to the upside–and subdued elsewhere, the IMF’s report mentioned.<\/p>\n
Advanced economies are expected to grow at an average rate of 1.6%, whereas emerging economies are set to grow at 4.2%, with the 2026 projection predicting a 0.2% slowdown.<\/p>\n
IMF also predicts that Spain is going to be the fastest-growing ‘advanced economy’, growing at a rate of 2.9%. The United States is also set to grow at 1.9%, down from 2.4% in 2024.<\/p>\n
Meanwhile, the forecast predicts Brazil’s growth at 2.4%, Canada at 1.2%, Japan at 1.1% while ASEAN-5 countries<\/p>\n
The October WEO IMF predictions are up relative to their April forecasts, but continue to be on a downward revision relative to the pre-tariff policies.<\/p>\n
Despite India’s rapid growth, the IMF predicts global growth will slow from 3.3% in 2024 to 3.2% in 2026.<\/p>\n
The IMF also predicts that ‘prolonged uncertainty, more protectionism, and labour supply shocks’ could reduce growth. While “fiscal vulnerabilities, potential financial market corrections, and erosion of institutions could threaten stability.”<\/p>\n
The IMF urged policymakers to restore confidence through credible, transparent, and sustainable policies, with trade diplomacy to be paired with macroeconomic adjustment.<\/p>\n
“Fiscal buffers should be rebuilt. Central bank independence should be preserved. Efforts on structural reforms should be redoubled”, the IMF said.<\/p>\n
Earlier in October, the IMF announced its revisions to forecasts, projecting an upward growth to 6.6%. That revision was largely due to India’s strong growth momentum in the first quarter of FY26, when the economy grew at 7.8%.<\/p>\n
The upward revision is mainly due to the carryover effect from a strong first quarter, rather than any offsetting effect from recent US tariffs.<\/p>\n
In 2024-25, the Indian economy grew by 6.5% in real terms. The government has maintained the GDP forecast at 6.3-6.8% for 2025-26, even amid US tariff uncertainty, affirming confidence in the country’s robust domestic consumption. (ANI)<\/p>\n
(This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)<\/p>\n","protected":false},"excerpt":{"rendered":"New Delhi [India], October 25 (ANI): The International Monetary Fund (IMF) has predicted that India will continue to…\n","protected":false},"author":2,"featured_media":238073,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[112322,112323,45,49,48,96133,55268,5141,46,112324,112325,112326,15805,112327,11951,112328,112329,14383,112330],"class_list":{"0":"post-238072","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-advanced-economies","9":"tag-asean-5","10":"tag-business","11":"tag-ca","12":"tag-canada","13":"tag-developing-economies","14":"tag-economic-outlook","15":"tag-economic-uncertainty","16":"tag-economy","17":"tag-global-growth","18":"tag-global-inflation","19":"tag-growth-rate","20":"tag-imf","21":"tag-india-vs-china","22":"tag-indian-economy","23":"tag-macroeconomic-adjustment","24":"tag-trade-diplomacy","25":"tag-us-tariffs","26":"tag-weo-report"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/238072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=238072"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/238072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/238073"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=238072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=238072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=238072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}