IMF Upgrades India's Economic Outlook Amid Global Slowdown

The International Monetary Fund (IMF) has revised its growth forecast for India, predicting a robust 7% growth in 2024, an increase from the previous estimate of 6.8%. This positions India as a key player in the global economy, with its growth, alongside China's, expected to contribute nearly half of the world's economic expansion this year. The IMF has previously recognized India as "the world's fastest-growing major economy," highlighting its significant role in the global market. In contrast, China's economic outlook remains less optimistic, with a projected growth rate of 5% for 2024, consistent with earlier forecasts. However, the IMF anticipates a gradual decline in China's growth, predicting a drop to 4.5% in 2025 and further down to 3.3% by 2029. This slowdown reflects a shift in China's economic structure, which has become less dependent on external factors for growth over the past two decades. Recent data from China indicated a year-on-year growth of 4.7% in the second quarter, falling short of economists' expectations. This underperformance raises concerns about the sustainability of China's economic momentum, especially as global growth is projected to remain steady at 3.2% in 2024, with a slight increase to 3.3% in 2025. Additionally, the eurozone's growth forecast has been upgraded to 0.9% for this year, driven by stronger service sector performance and unexpected net exports. The IMF's report underscores the complexities of the global economic landscape, suggesting potential challenges ahead, particularly regarding inflation and growth pace.