The International Monetary Fund (IMF) has lowered its global growth forecast for 2026, pointing to rising geopolitical tensions and higher oil prices, but has kept India’s growth estimate unchanged at a strong 6.5%.
The IMF now expects the global economy to grow by around 3.1%, slower than earlier projections. Ongoing conflicts, especially in West Asia, along with rising energy costs, have added pressure on economies and created uncertainty in global markets.
Despite this, India continues to perform steadily. The IMF said the country’s growth remains supported by strong domestic demand, steady consumption, and ongoing investments, helping it stay on a solid footing even as the global outlook weakens.
At 6.5%, India is expected to grow at nearly twice the pace of the global economy, reinforcing its position as one of the fastest-growing major economies in the world.
The report also highlighted that India’s relatively stable economic environment and internal growth drivers are helping it manage external shocks better than many other countries.
However, the IMF cautioned that risks remain. Rising crude oil prices and uncertainty around key routes like the Strait of Hormuz could keep global markets volatile. If tensions escalate further, it may impact growth and push inflation higher across countries.
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