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The global growth forecast has been lowered to 2.8% for 2025 and 3% for 2026. US growth is expected to slow to 1.8%. India may be the fastest-growing economy at 6.2%
India’s growth outlook for 2025 has been adjusted to 6.2 percent from 6.5 percent according to IMF’s report. (Representative/Shutterestock)
The global economy is exhibiting signs of stabilisation above recessionary levels, yet growth rates are failing to meet expectations. The International Monetary Fund (IMF), in its April 2025 World Economic Outlook, has indicated a reduction in global growth forecasts.
The forecast for 2025 has been lowered by 0.5 percentage points to 2.8 percent, and for 2026, it has been cut by 0.3 percentage points to 3 percent, compared to the January outlook.
The report attributes this slowdown to factors such as US tariffs, escalating trade tensions, and policy uncertainties. Economic growth in the United States, the world’s largest economy, is expected to slow to 1.8 percent, a reduction of 0.9 percentage points from the previous year’s forecast. This deceleration is largely attributed to persistent trade conflicts and weakening demand.
Here are the top 10 world’s strongest economies by GDP for 2025:
- United States – $30.34 trillion
- China – $19.53 trillion
- Germany – $4.92 trillion
- India – $4.39 trillion
- Japan – $4.27 trillion
- United Kingdom – $3.73 trillion
- France – $3.28 trillion
- Italy – $2.46 trillion
- Canada – $2.33 trillion
- Brazil – $2.31 trillion
India’s growth outlook for 2025 has been adjusted to 6.2 percent from 6.5 percent, and for 2026 to 6.2 percent from 6.3 percent, according to the IMF’s report. The relatively stable growth for India is supported by private consumption, particularly in rural areas.
The IMF suggests that the Indian economy could be the fastest-growing in the next two years. The Reserve Bank of India estimates that real GDP growth for the fiscal year 2025-26 may now be 6.5 percent, slightly down from the earlier forecast of 6.7 percent.
