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International Monetary Fund. – Photo: ANI (File)
Expansion
The International Monetary Fund (IMF) said in its report on Friday that due to a larger than expected decline in industrial activity, economic growth in India has slowed down and is expected to be 6.5 percent by 2026. The IMF said in the latest update of its ‘World Economic Outlook’ that India’s growth rate was 8.2 percent in 2023, which will reduce to 6.5 percent in 2024. This decline has come due to a larger than expected slowdown in industrial activity.
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The report states that the global growth rate is estimated to be 3.3 percent in 2025 and 2026, which is 3.7 percent lower than the average of the last 20 years. There is no significant change in the forecast for 2025, as growth in the US has balanced out the slowdown in other major economies.
It further said, India’s growth slowed down more than expected due to a larger than expected decline in industrial activity. According to the report, global inflation is expected to decline to 4.2 percent in 2025 and 3.5 percent in 2026. It may decline earlier in developed economies, while it will take longer to decline in emerging economies.
IMF chief economist Pierre-Olivier Gorincha said inflation between 4.2 percent and 3.5 percent by the end of next year would help stabilize the situation after the global crises. The pandemic and the Russia-Ukraine war drove inflation to the highest level in four decades. Regarding China, the IMF said in its report that China’s growth rate in 2024 is estimated to be 4.5 percent, which is 0.4 percent more than the earlier estimate.
