IMF likely to upgrade India's growth forecast
What's the story
The International Monetary Fund (IMF) is expected to revise its growth forecast for India in the upcoming World Economic Outlook report. Julie Kozack, an IMF spokesperson, emphasized India's strong economic performance, with third-quarter data surpassing expectations. She described India as a key driver of global growth and hinted at an imminent upgrade in the country's growth projection.
Previous projection
Initial growth forecast for India
In the IMF's Article IV Staff Report, India's economic growth for the fiscal year 2025-26 was projected at 6.6%, driven by strong consumption. However, Kozack noted that the actual third-quarter growth in India was stronger than anticipated. This development makes it likely that the IMF will revise its forecast upward in its upcoming report due next week.
Global outlook
Global growth forecast and potential risks
IMF Managing Director Kristalina Georgieva has said that the upcoming economic forecasts will show the global economy's resilience to trade shocks and "fairly strong" growth. However, she also warned of potential risks from geopolitical tensions and rapid technological changes. The UN agency is expected to release its World Economic Outlook update on January 19, which will include a revised growth number for India at that time.