The International Monetary Fund (IMF) on Friday indicated that India's economic growth has decelerated more than expecte, primarily due to an unexpected slowdown in industrial activities. The IMF projected India's growth to maintain at 6.5 per cent till 2026. India's growth rate declined from 8.2 per cent in 2023 to 6.5 per cent in 2024.
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"Growth in India slowed more than expected, led by a sharper-than-expected deceleration in industrial activity," the IMF said in its latest World Economic Outlook update. India's growth trajectory shows a decline from 8.2 per cent in 2023 to 6.5 per cent in 2024.
The global economic growth projection stands at 3.3 per cent for 2025 and 2026, falling short of the 3.7 per cent historical average from 2000-19. Additionally, the 2025 forecast remains largely consistent with October 2024 WEO, with upward adjustments in US figures balancing downward revisions in other major economies.
The IMF anticipates global headline inflation to reduce to 4.2 per cent in 2025 and further to 3.5 per cent in 2026, with advanced economies expected to achieve target rates sooner than emerging markets and developing economies.
Additionally, the US economy displays robust underlying demand, supported by strong wealth effects and accommodative monetary and financial conditions, with growth projected at 2.7 per cent in 2025.
IMF's chief economist Pierre-Olivier Gourinchas said that declining inflation rates will help resolve recent global disruptions, including pandemic effects and consequences of Russia's Ukraine invasion, which triggered the most significant inflation surge in four decades.
Meanwhile for China, the IMF has revised its growth forecast upward by 0.4 percentage points, projecting 4.5 per cent growth for the next year.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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