New Delhi— India continues to hold its position as the world’s fastest-growing major economy and is the only country projected to achieve over 6 percent growth over the next two years, according to the latest International Monetary Fund (IMF) report released Tuesday. This comes as the IMF downgraded growth forecasts for more than 120 countries.
IMF Chief Economist Gita Gopinath shared that the April 2025 World Economic Outlook (WEO) projects significantly weaker global growth at 2.8 percent for 2025, with downward revisions for 127 countries, representing 86 percent of global GDP.
“The path forward requires clarity and predictability in trade policies. Countries must address structural challenges to rebuild resilience and restore growth momentum,” Gopinath posted on X.
The report forecasts India’s economy to grow 6.2 percent in 2025 and 6.3 percent in 2026, outpacing second-ranked China, which is projected to grow 4 percent in 2025 and 4.6 percent in 2026.
By comparison, the United States is expected to see GDP growth slow to 1.8 percent in 2025 and 1.7 percent in 2026, largely impacted by ongoing global tariff disputes. The Euro Area is forecast to grow just 0.8 percent in 2025, improving slightly to 1.2 percent in 2026. Germany is projected to see zero growth in 2025, recovering modestly to 0.9 percent in 2026, while France is expected to grow 0.6 percent and 1 percent, respectively. Spain is forecast to lead among European nations with 2.5 percent growth in 2025, slowing to 1.8 percent in 2026. The UK is projected to grow 1.1 percent in 2025 and 1.4 percent in 2026.
Japan, also affected by global trade tensions, is expected to stagnate at 0.6 percent growth in both 2025 and 2026.
The IMF report attributes the global slowdown to recent U.S. tariff hikes, stating that multiple waves of tariffs imposed on major trading partners and critical sectors since January 2025 have heightened global uncertainty.
“The sharp increase in tariffs and the resulting uncertainty since April 2 are expected to significantly slow global growth in the near term,” the report stated.
The IMF now projects global growth at 2.8 percent in 2025 and 3 percent in 2026, down from 3.3 percent for both years forecast in its January update. (Source: IANS)
