international The Monetary Fund (IMF) on Friday said economic growth in India has slowed down more than expected due to a larger than expected decline in industrial activity and is projected to remain at 6.5 per cent by 2026. “Growth in India slowed more than expected due to a sharper than expected decline in industrial activity,” the IMF said in its updated World Economic Outlook (WEO) report. According to the report, the global economy remains stable. India’s growth rate in the year 2023 was 8.2 percent, which will reduce to 6.5 percent in 2024.
Decline in global growth also
Global growth is projected to be 3.3 percent in 2025 and 2026, which is lower than the historical (2000-19) average of 3.7 percent. The forecast for 2025 is largely unchanged from the October 2024 report. Growth primarily in the US leads to declines in other major economies. It said global headline inflation is expected to decline to 4.2 percent in 2025 and 3.5 percent in 2026. It will reach the target earlier in developed economies than in emerging markets and developing economies. According to the IMF report, the global growth rate is expected to remain stable, although it will be slow. The report said underlying demand in the US remains strong, reflecting strong funding effects, a less restrictive monetary policy stance and favorable financial conditions.
India’s growth rate in 2023 was 8.2 percent
“India is projected to grow at 6.5 percent in 2025 and 2026, as projected in October, which is in line with potential growth,” the IMF said. It said that India’s growth rate in 2023 was 8.2 percent, which will fall to 6.5 percent in 2024. It is expected to remain the same in 2025 and 2026 also. IMF chief economist Pierre-Olivier Gourinchas said a decline in inflation to 4.2 percent this year and 3.5 percent next year would help mitigate the global turmoil of recent years, including the Covid pandemic and Russia’s invasion of Ukraine. also includes. These led to the largest increase in inflation in four decades. China’s growth rate next year is now expected to be 4.5 percent, which is 0.4 percent more than previously forecast.
(With inputs from PTI/Language)
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