The International Monetary Fund (IMF) on Tuesday reduced the estimate of India’s GDP i.e. the development rate of Indian economy for FY 2025-26 to 6.2 percent. According to PTI news, the first IMF had made the same estimate of 6.5 percent. Estimates have been cut by the IMF due to trade stress and global uncertainty. The IMF said in its World Economic Scenario (WEO) that for India, the development scenario in 2025 is relatively more stable, supported by personal consumption, especially in rural areas.
An estimate of growth rate reduced by 0.3 percent
According to the news, the IMF said that India, which increased at the rate of 6.5 percent in 2024-25, is estimated to increase at a rate of 6.2 percent in 2026-27. Also, this growth rate is 0.3 percent less than the WEO update of January 2025. According to the report, the global growth in 2025 is estimated to be 2.8 percent, which is 0.5 percent lower than earlier estimates. The global economy is expected to grow at a 3 percent rate in 2026.
How will the growth of developed economies be
For advanced economies, the report stated that the growth under reference forecast is estimated to be 1.4 percent in 2024 to 1.4 percent in 2025 and 1.5 percent in 2026. The growth for 2025 is now estimated to be 0.5 percent lower against the WEO update estimates of January 2025. The 2025 forecasts include amendment downwards for Canada, Japan, United Kingdom and the United States to amend the upwards and upwards to Spain.
For the United States, an increase in 2025 is estimated to be reduced to 1.8 percent, which is 1 percent lower at the rate of 2024 and 0.9 percent less than the forecast rate in the WEO update of January 2025.
Decreased estimate for China
After the remarkable recession in 2024, growth in emerging and developing Asia is expected to fall by 4.5 percent in 2025 and 4.6 percent in 2026. Emerging and developing Asia, especially the countries of the Union of South East Asian Nations (ASEAN), have been the most affected by the April tariff. For China, the 2025 GDP increase in the WEO update of January 2025 has been reduced from 4.6 percent to 4.0 percent.
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