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Get the latest global and India economic updates for 2025. IMF retains 2.7% growth forecast, India projected at 6.7%. Key trends, inflation, and budget insights.
IMF Retains Global Growth Forecast at 2.7%
The International Monetary Fund (IMF) has maintained its global GDP growth forecast at 2.7% for 2025, citing challenges like high inflation and geopolitical tensions. Despite these concerns, emerging markets, particularly in Asia, are expected to drive economic momentum.
US Economic Outlook: Steady Growth Amid Policy Concerns
The U.S. economy is projected to expand by 2.4% in 2025, supported by robust consumer spending and increased business investments. However, uncertainties related to potential import tariffs could weigh on economic performance.
India’s Economic Landscape
World Bank Forecasts Steady 6.7% GDP Growth
According to the World Bank, India’s GDP growth is expected to remain at 6.7% for the next two fiscal years (FY 2025-26 and FY 2026-27). This projection reflects strong performance in the services sector and manufacturing expansion, fueled by government reforms.
Moody’s Revises India’s Growth Forecast to 6.4%
Moody’s Analytics has lowered India’s GDP growth forecast for FY 2025 to 6.4%, citing factors like a weakening rupee and declining foreign investment. The report underscores the need for fiscal and monetary policy adjustments to sustain economic growth amid rising inflation risks.
Industry Leaders Optimistic About Economic Growth
A recent industry survey highlights that the majority of business leaders anticipate India’s GDP growth to range between 6% and 6.9% in FY 2025-26. This optimism stems from advancements in technology and improvements in the ease of doing business.
Inflation Trends: Slight Cooling Expected
Moody’s projects India’s inflation rate to decline to 4.7% in 2025 from 4.8% in 2024. However, food inflation remains a concern due to rising input costs and currency depreciation.
Union Budget 2025: Key Expectations
With the Union Budget on the horizon, expectations are high for policies aimed at boosting domestic demand and investments. The government is likely to target a fiscal deficit of below 4.5% of GDP in the next financial year.
Conclusion
While global economic growth faces hurdles, India continues to stand out with a strong growth trajectory. Policymakers are focusing on structural reforms, technology-driven advancements, and fiscal measures to sustain this momentum. The upcoming Union Budget 2025 will play a pivotal role in shaping India’s economic outlook in the near future.
Stay tuned for more updates on the latest economic trends and market insights!
