The International Monetary Fund (IMF) recently adjusted its growth forecast for India, raising it from 6.5% to 6.8%. This positions India as the fastest-growing major economy globally, surpassing China’s projected growth of 4.6%. The IMF’s World Economic Outlook attributes India’s growth to strong domestic demand and a growing working-age population.
On a global scale, the IMF upgraded its economic outlook, predicting a “soft landing” characterized by controlled inflation and steady growth. Global growth is anticipated to reach 3.2% in 2024, up from the previous forecast of 3.1%, with a continuation of this growth trend into 2025. The IMF credits much of this expansion to robust growth in the United States, with a forecasted increase of 2.7% in 2024.
Despite concerns about inflation, the IMF expects a decline from 6.8% in 2023 to 5.9% in 2024 globally, further dropping to 4.5% in 2025, particularly in advanced economies due to higher interest rates.
In terms of Asia’s forecast, growth in emerging and developing Asia is predicted to decrease from 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025, slightly adjusted from the January 2024 WEO Update. China’s growth is also expected to slow from 5.2% in 2023 to 4.6% in 2024 and 4.1% in 2025 due to the easing of post-pandemic boosts to consumption and fiscal stimulus, alongside ongoing weakness in the property sector.