India Maintains Position as Fastest Growing Economy with Over 6% Growth Amidst IMF Downgrades for 127 Nations
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Synopsis
According to the latest IMF report, India remains the fastest-growing major economy globally, projected to exceed 6% growth in the next two years, while the IMF has reduced growth forecasts for over 120 countries.
Key Takeaways
- India projected to grow at 6.2% in 2025 and 6.3% in 2026.
- IMF downgrades growth forecasts for 127 countries.
- The US GDP growth to slow to 1.8% this year.
- Euro Area growth forecast at 0.8% in 2025.
- Japan expected to stagnate at 0.6% growth.
New Delhi, April 22 (NationPress) India continues to be recognized as the world's fastest-growing major economy, remaining the sole nation projected to achieve over 6 percent growth in the forthcoming two years, as noted in an IMF report released on Tuesday, which has revised downward the growth outlook for more than 120 countries.
IMF chief economist Gita Gopinath remarked, “Our April 2025 World Economic Outlook anticipates significantly weaker global growth at 2.8 percent for 2025, with growth downgrades affecting 127 countries that comprise 86 percent of world GDP.
“To move forward, we need clarity and predictability regarding trade policies. Nations must tackle structural challenges to enhance resilience and reignite growth momentum,” Gopinath further stated in a post on X.
The forecast estimates the Indian economy will grow by 6.2 percent in 2025 and 6.3 percent in 2026, which is more than 2 percentage points higher than China's growth outlook of 4 percent for 2025 and 4.6 percent in 2026.
The United States, which has instigated tariff disputes globally, is predicted to see its GDP growth decrease to 1.8 percent this year, with a further decline to 1.7 percent in 2026, according to the IMF report.
Additionally, the Euro Area is anticipated to slow down to a mere 0.8 percent growth rate in 2025, followed by a slight recovery at 1.2 percent in 2026. Germany is expected to be the most adversely affected, with no growth in 2025, and 0.9 percent in 2026. France is estimated to achieve 0.6 percent and 1 percent growth for the two respective years. Spain is projected to outperform others in 2025 with a 2.5 percent growth rate but will likely slow to 1.8 percent in 2026. The UK is expected to report growth rates of 1.1 percent and 1.4 percent for the two years.
Japan is also predicted to face challenges due to the global trade war, with its growth stagnating at 0.6 percent for both years.
The IMF unveiled the April 2025 World Economic Outlook (WEO) report in Washington on Tuesday.
The report indicated that shortly after the January 2025 WEO Update, the US implemented multiple waves of tariffs affecting major trading partners and essential sectors.
“Consequently, we anticipate that the sharp rise in tariffs and uncertainty on April 2 will lead to a significant global growth slowdown in the near term,” the report stated, projecting global growth to decrease to 2.8 percent in 2025 and 3 percent in 2026, down from 3.3 percent for both years in its January update.
