The Indian economy is projected to clock slightly dampened growth in 2025, a senior executive at IMF said. Kristalina Georgieva, Managing Director, the International Monetary Fund (IMF), noted that the economy is expected to be a ‘little weaker’ in the year despite global growth remaining steady.
Speaking at the annual media roundtable with a group of reporters on Friday, the executive said that she anticipates major uncertainty in the world this year, particularly around the trade policy of the US, reported PTI. She added that global growth is expected to remain steady in the year, however, regional divergence is also set to be prevalent.
“The US is doing quite a bit better than we expected before, the EU is somewhat stalling, (and) India a little weaker,” Georgieva said. She added that Brazil was facing higher inflation. Meanwhile, the IMF said that China is witnessing deflationary pressures and facing challenges with domestic demand. “Low-income countries, despite all the efforts they are making, are in a position when any new shock can affect them quite negatively,” she added.
The executive noted that 2025 is expected to clock major uncertainty, specially regarding economic policies. “Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency,” she pointed out.
She explained that this uncertainty remains particularly high regarding the trade policy going ahead, adding to the headwinds that face the global economy, specifically for countries and regions that are more integrated in global supply chains, medium-sized economies, and ‘Asia as a region’.
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Regarding inflation, the executive stated that headline inflation is moving back towards target sooner in advanced countries in comparison to emerging markets.
