IMF Raises India's GDP Forecast

In a recent update, the International Monetary Fund (IMF) has revised its global growth projections upwards, with India's economy expected to grow by 6.4% in both 2025 and 2026. This adjustment reflects a more favorable external environment than previously anticipated in April's forecast.

Global Economic Outlook Brightens

The IMF also highlighted an improved global growth projection, now at 3% for 2025 and 3.1% for the next year. Factors contributing to this optimism include stronger-than-expected anticipatory measures for higher tariffs, lower average effective US tariff rates, improved financial conditions, and fiscal expansions in major economies.

Revised Estimates for US and China

Growth estimates for the US and China have been revised upwards, with China's growth forecast adjusted by 0.8 percentage points to 4.8%. This revision underscores the dynamic nature of global economic recovery and the interconnectedness of major economies.