‘India’s economic growth rate slowed down more than expected, global inflation expected to decline this year’, IMF claims

New Delhi|The International Monetary Fund (IMF) said in its report that economic growth in India has slowed down due to higher-than-expected decline in industrial activity and is projected to remain at 6.5 per cent by the year 2026. India’s growth rate was 8.2 per cent in 2023, declining to 6.5 per cent in 2024, the IMF said in the latest update to its ‘World Economic Outlook’. This decline is due to a greater-than-expected slowdown in industrial activity. Globally, global growth is projected to be 3.3 per cent in 2025 and 2026, down 3.7 per cent from the average for the past 20 years, the report notes. Projections for 2025 have not changed significantly, as the slowdown of other major economies has been counterbalanced by a surge in U.S. growth rates.
Globally, global growth is projected to be 3.3 per cent in 2025 and 2026, down 3.7 per cent from the average for the past 20 years, the report notes. Projections for 2025 have not changed significantly, as the slowdown of other major economies has been counterbalanced by a surge in U.S. growth rates.
It further said, India’s growth slowed down more than expected due to a larger-than-expected decline in industrial activities. According to the report, global inflation is projected to decline to 4.2 per cent in 2025 and 3.5 per cent in 2026. In developed economies it may decline earlier, while in emerging economies it will take longer to decline.
IMF chief economist Peer-Olivier Gourinsha said 4.2 percent inflation and 3.5 percent inflation will help stabilize the situation after the global crises by the end of next year. The pandemic and the Russia-Ukraine war raised inflation the most in four decades. Regarding China, the IMF said in its report that China’s growth rate is estimated to be 4.5 percent in 2024, which is 0.4 percent more than the earlier estimate.