April 01, 2026 06:47 pm (IST)
Follow us:
IMF forecasts lower global growth this year
Washington, Oct 6 (IBNS): The Indian Monetary Fund (IMF) on Tuesday predicted a lower global growth compared to last year, with modest pickup in advanced economies.
In its latest World Economic Outlook (WEO), the IMF stated that Global real GDP grew at 3.4 percent last year and is forecast to grow at only 3.1 percent this year. Growth is expected to rebound to 3.6 percent next year.
"The IMF’s latest World Economic Outlook (WEO) foresees lower global growth compared to last year, with modest pickup in advanced economies and a slowing in emerging markets, primarily reflecting weakness in some large emerging economies and oil-exporting countries," the IMF stated.
“Six years after the world economy emerged from its broadest and deepest postwar recession, the holy grail of robust and synchronized global expansion remains elusive,” said Maurice Obstfeld, the IMF Economic Counsellor and Director of the Research Department.
“Despite considerable differences in country-specific outlooks, the new forecasts mark down expected near-term growth marginally but nearly across the board. Moreover, downside risks to the world economy appear more pronounced than they did just a few months ago,” Obstfeld said.
These forecasts reflect a world economy that is at the intersection of at least three powerful forces, Obstfeld noted.
"First, China’s economic transformation—away from export- and investment-led growth and manufacturing, in favor of a greater focus on consumption and services; second, and related, the fall in commodity prices; and third, the impending increase in U.S. interest rates, which can have global repercussions and add to current uncertainties," the IMF survey stated.
In this global environment, with the risk of low growth for a long time, the WEO underlines the need for policymakers to raise actual and potential growth.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Fuel prices rise: Premium petrol, diesel hiked amid oil price surge
Wed, Apr 01 2026
Defence PSU boom! Garden Reach Shipbuilders & Engineers stock rockets 20%—what’s driving the surge?
Wed, Apr 01 2026
Dalal Street on fire: Sensex soars, Nifty rockets—here’s why!
Wed, Apr 01 2026
Layoff alert: Oracle cuts 30,000 jobs globally, 12,000 hit in India
Wed, Apr 01 2026
PwC India announces leadership transition in Deals Business
Tue, Mar 31 2026
DBS Bank India launches relationship-led banking for 'India’s globally mobile, emerging affluent'
Tue, Mar 31 2026
Major expansion ahead: Govt clears 29 proposals under ECMS
Tue, Mar 31 2026