New Delhi – India continues to hold its position as the world’s fastest-growing major economy, and is the only country projected to register growth above 6% in the next two years, according to the latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF) on Tuesday.
The IMF report comes against the backdrop of widespread downgrades in global growth projections, with forecasts trimmed for 127 countries — representing 86% of the global economy.
“Our April 2025 World Economic Outlook projects significantly weaker global growth at 2.8% for 2025, with downgrades across most major economies,” said IMF First Deputy Managing Director Gita Gopinath in a post on X (formerly Twitter). “The path forward requires clarity and predictability in trade policy. Countries must address structural challenges to rebuild resilience and restore growth momentum.”
According to the IMF, India’s economy is expected to expand by 6.2% in 2025 and 6.3% in 2026 — more than two percentage points ahead of China, which is forecast to grow at 4% in 2025 and 4.6% in 2026.
In contrast, the United States — which has initiated a series of new tariffs affecting major global trading partners — is projected to grow at a slower pace of 1.8% in 2025, declining further to 1.7% in 2026.
Europe is expected to fare even worse. The Euro Area is forecast to grow just 0.8% in 2025, with a modest uptick to 1.2% in 2026. Germany is projected to experience zero growth in 2025 and 0.9% in 2026, while France is expected to grow by 0.6% and 1%, respectively. Spain stands out in the region, with a growth forecast of 2.5% for 2025, though it is likely to slow to 1.8% in 2026. The UK is anticipated to grow by 1.1% in 2025 and 1.4% in 2026.
Japan is also set to feel the impact of global trade tensions, with its growth stagnating at 0.6% for both years.
The IMF noted that following its January 2025 WEO update, the US imposed multiple rounds of tariffs targeting key sectors and trading partners. “The sharp rise in tariffs and accompanying policy uncertainty is expected to significantly dampen global economic momentum,” the report warned.
As a result, global growth forecasts have been revised downward to 2.8% in 2025 and 3% in 2026 — down from the earlier 3.3% estimate for both years.
The IMF’s World Economic Outlook was released from Washington on Tuesday. (Source: IANS)
