IMF predicts weaker Indian economy amid steady global growth in 2025

The Indian economy is expected to show weaker performance in 2025, according to the International Monetary Fund (IMF). While global economic growth is projected to remain steady, significant regional variations are anticipated, with India facing challenges in maintaining its pace.

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During an annual media roundtable, IMF Managing Director Kristalina Georgieva highlighted several uncertainties shaping the global economic outlook. The IMF’s upcoming World Economic Outlook update is expected to provide more detailed insights into India's economic trajectory.

Globally, the United States is performing better than initially expected, while the European Union shows signs of stagnation. China, the second-largest global economy, is grappling with deflationary pressures and weak domestic demand. Meanwhile, Brazil faces rising inflation concerns, adding to the region's economic challenges.

Low-income nations remain vulnerable to economic shocks, despite their ongoing efforts to build resilience. The IMF has cautioned that any unexpected disruptions could severely impact these economies.

Uncertainty surrounding U.S. economic policy is expected to weigh heavily on the global outlook in 2025. Key areas of concern include trade policies, tariffs, tax structures, deregulation, and government efficiency. The incoming U.S. administration’s policy directions are anticipated to influence global economic trends significantly.

The IMF’s observations underscore the uneven recovery across regions and the need for careful monitoring of global economic developments.