Latest news with #WEO
Business Standard
9 hours ago
- Business
- Business Standard
IMF maintains caution on impact of increased hedging against dollar weakness
The International Monetary Fund (IMF), in its World Economic Outlook (WEO) July update stated that the US dollar has weakened considerably since April, although yields in the United States are higher than those in other advanced economies such as the euro area. Some investors point out structural factors driving dollar depreciation, including shifts away from US securities, though current data on cross-border capital flows does not suggest a broad-based pullback. Increased hedging against dollar weakness resulting from investor concerns about changes in the historical hedging properties of the dollar has contributed to its depreciation in part. However, whether such a switch in the currencies perceived risk-hedging properties is temporary or proves longer-lasting remains uncertain at this juncture. IMF noted further that many emerging market currencies have appreciated, and capital inflows have resumed since April, with investors seeing space for some emerging market central banks to ease.
New Indian Express
15 hours ago
- Business
- New Indian Express
India to grow 6.4% in 2025 and 2026, reform momentum driving stable growth: IMF
NEW YORK / WASHINGTON: India is projected to grow at 6.4 percent in fiscal year 2025 and 2026, and the country's stable growth is driven by a reform momentum supporting robust consumption growth and a push for public investment, the International Monetary Fund has said. The IMF released its World Economic Outlook (WEO) Update on Tuesday. It said that growth in India is projected to be 6.4 percent in 2025 and 2026, with both numbers revised slightly upward, reflecting a more "benign external environment" than assumed in the April reference forecast. In a footnote, the IMF said that for India, data and projections are presented on a fiscal year (FY) basis. India's growth projections are 6.7 percent for 2025 and 6.4 percent for 2026, based on the calendar year. During a press briefing, IMF Research Department Division Chief Deniz Igan, responding to a question on India, said, "We have actually quite stable growth for the country." "India, which grew at 6.5 percent in 2024, is projected to grow at 6.4 percent in 2025 as well as in 2026. The 6.4 percent growth rates for this year and next are slight upgrades compared to what we had in April - 0.2 percentage points in 2025 and 0.1 percentage point in 2026," she said. Igan said that the driver of this relatively stable growth for India "is the fact that there has been a reform momentum supporting robust consumption growth and a push for public investment." She said that going forward, it will be important for India to "keep this momentum going and to continue the recent good growth performance that we have seen." For India, the priorities would include fostering job creation and absorbing excess labour from the agricultural sectors by reskilling labour, by allowing more labour market flexibility, while at the same time, continuing to invest in infrastructure and removing trade restrictions. "More in the medium term, India needs to continue to invest in education, take a step at land reform and expand social safety net and reduce red tape to allow businesses perform better," she said. The IMF said that in emerging market and developing economies, growth is expected to be 4.1 percent in 2025 and 4.0 percent in 2026. Relative to the forecast in April, growth in 2025 for China is revised upward by 0.8 percentage point to 4.8 percent. This revision reflects stronger-than-expected activity in the first half of 2025 and the significant reduction in US-China tariffs. Growth in 2026 is projected at 4.2 percent, again reflecting the lower effective tariff rates, the IMF said. The IMF said that global growth is projected at three per cent for 2025 and 3.1 percent in 2026. The forecast for 2025 is 0.2 percentage points higher than that in the reference forecast of the April 2025 World Economic Outlook and 0.1 percentage points higher for 2026. This reflects stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective US tariff rates than announced in April; an improvement in financial conditions, including due to a weaker US dollar; and fiscal expansion in some major jurisdictions. Growth in advanced economies is projected to be 1.5 percent in 2025 and 1.6 percent in 2026. In the United States, with tariff rates settling at lower levels than those announced on April 2 and looser financial conditions, the economy is projected to expand at a rate of 1.9 percent in 2025. This is 0.1 percentage point higher than the April reference forecast, with some offset from private demand cooling faster than expected and weaker immigration. Growth is projected to pick up slightly to 2.0 percent in 2026, it said.
Economic Times
16 hours ago
- Business
- Economic Times
India projected to grow 6.4% in 2025 & 2026, reform momentum driving stable growth: IMF
Reuters FILE PHOTO: A man takes out a scooter at the International Monetary Fund headquarters after closing of the IMF/World Bank annual meetings in Washington, U.S., October 9, 2016. REUTERS/Yuri Gripas/File Photo India is projected to grow at 6.4 per cent in fiscal year 2025 and 2026, and the country's stable growth is driven by a reform momentum supporting robust consumption growth and a push for public investment, the International Monetary Fund has IMF released its World Economic Outlook (WEO) Update on said that growth in India is projected to be 6.4 per cent in 2025 and 2026, with both numbers revised slightly upward, reflecting a more "benign external environment" than assumed in the April reference forecast. In a footnote, the IMF said that for India, data and projections are presented on a fiscal year (FY) basis. India's growth projections are 6.7 per cent for 2025 and 6.4 per cent for 2026, based on the calendar a press briefing, IMF Research Department Division Chief Deniz Igan, responding to a question on India, said, "We have actually quite stable growth" for the country. India, which grew at 6.5 per cent in 2024, is projected to grow at 6.4 per cent in 2025 as well as in 2026."The 6.4 per cent growth rates for this year and next are slight upgrades compared to what we had in April - 0.2 percentage points in 2025 and 0.1 percentage point in 2026," she said. Igan said that the driver of this relatively stable growth for India "is the fact that there has been a reform momentum supporting robust consumption growth and a push for public investment." She said that going forward, it will be important for India to "keep this momentum going and to continue the recent good growth performance that we have seen." For India, the priorities would include fostering job creation and absorbing excess labour from the agricultural sectors by reskilling labour, by allowing more labour market flexibility, while at the same time, continuing to invest in infrastructure and removing trade restrictions."More in the medium term, India needs to continue to invest in education, take a step at land reform and expand social safety net and reduce red tape to allow businesses perform better," she IMF said that in emerging market and developing economies, growth is expected to be 4.1 per cent in 2025 and 4.0 per cent in to the forecast in April, growth in 2025 for China is revised upward by 0.8 percentage point to 4.8 per cent. This revision reflects stronger-than-expected activity in the first half of 2025 and the significant reduction in US-China in 2026 is projected at 4.2 per cent, again reflecting the lower effective tariff rates, the IMF said. The IMF said that global growth is projected at three per cent for 2025 and 3.1 per cent in 2026. The forecast for 2025 is 0.2 percentage points higher than that in the reference forecast of the April 2025 World Economic Outlook and 0.1 percentage points higher for reflects stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective US tariff rates than announced in April; an improvement in financial conditions, including due to a weaker US dollar; and fiscal expansion in some major in advanced economies is projected to be 1.5 per cent in 2025 and 1.6 per cent in 2026. In the United States, with tariff rates settling at lower levels than those announced on April 2 and looser financial conditions, the economy is projected to expand at a rate of 1.9 per cent in 2025. This is 0.1 percentage point higher than the April reference forecast, with some offset from private demand cooling faster than expected and weaker immigration. Growth is projected to pick up slightly to 2.0 per cent in 2026, it said.
Time of India
16 hours ago
- Business
- Time of India
India projected to grow 6.4% in 2025 & 2026, reform momentum driving stable growth: IMF
India is projected to grow at 6.4 per cent in fiscal year 2025 and 2026, and the country's stable growth is driven by a reform momentum supporting robust consumption growth and a push for public investment, the International Monetary Fund has said. The IMF released its World Economic Outlook (WEO) Update on Tuesday. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Cybersecurity Operations Management Data Science PGDM Data Science Management Degree Healthcare others Public Policy CXO Digital Marketing Project Management MBA Product Management Others Finance Artificial Intelligence MCA Leadership Design Thinking Data Analytics Technology Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details It said that growth in India is projected to be 6.4 per cent in 2025 and 2026, with both numbers revised slightly upward, reflecting a more "benign external environment" than assumed in the April reference forecast. In a footnote, the IMF said that for India, data and projections are presented on a fiscal year (FY) basis. India's growth projections are 6.7 per cent for 2025 and 6.4 per cent for 2026, based on the calendar year. During a press briefing, IMF Research Department Division Chief Deniz Igan, responding to a question on India, said, "We have actually quite stable growth" for the country. Live Events India, which grew at 6.5 per cent in 2024, is projected to grow at 6.4 per cent in 2025 as well as in 2026. "The 6.4 per cent growth rates for this year and next are slight upgrades compared to what we had in April - 0.2 percentage points in 2025 and 0.1 percentage point in 2026," she said. Igan said that the driver of this relatively stable growth for India "is the fact that there has been a reform momentum supporting robust consumption growth and a push for public investment." She said that going forward, it will be important for India to "keep this momentum going and to continue the recent good growth performance that we have seen." For India, the priorities would include fostering job creation and absorbing excess labour from the agricultural sectors by reskilling labour, by allowing more labour market flexibility, while at the same time, continuing to invest in infrastructure and removing trade restrictions. "More in the medium term, India needs to continue to invest in education, take a step at land reform and expand social safety net and reduce red tape to allow businesses perform better," she said. The IMF said that in emerging market and developing economies, growth is expected to be 4.1 per cent in 2025 and 4.0 per cent in 2026. Relative to the forecast in April, growth in 2025 for China is revised upward by 0.8 percentage point to 4.8 per cent. This revision reflects stronger-than-expected activity in the first half of 2025 and the significant reduction in US-China tariffs. Growth in 2026 is projected at 4.2 per cent, again reflecting the lower effective tariff rates, the IMF said. The IMF said that global growth is projected at three per cent for 2025 and 3.1 per cent in 2026. The forecast for 2025 is 0.2 percentage points higher than that in the reference forecast of the April 2025 World Economic Outlook and 0.1 percentage points higher for 2026. This reflects stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective US tariff rates than announced in April; an improvement in financial conditions, including due to a weaker US dollar; and fiscal expansion in some major jurisdictions. Growth in advanced economies is projected to be 1.5 per cent in 2025 and 1.6 per cent in 2026. In the United States, with tariff rates settling at lower levels than those announced on April 2 and looser financial conditions, the economy is projected to expand at a rate of 1.9 per cent in 2025. This is 0.1 percentage point higher than the April reference forecast, with some offset from private demand cooling faster than expected and weaker immigration. Growth is projected to pick up slightly to 2.0 per cent in 2026, it said. Economic Times WhatsApp channel )
Zawya
17 hours ago
- Business
- Zawya
IMF 2025 World Economic Outlook projects growth rates of 3.0% for 2025, 3.1% for 2026
WASHINGTON: The IMF today announced an updated forecast for global growth. The Fund projects growth rates of 3.0% for 2025 and 3.1% for 2026. This new forecast for 2025 is an increase of 0.2 percentage points compared to the reference forecast in the April 2025 World Economic Outlook (WEO), while the outlook for 2026 is up by 0.1 percentage points. 'Global growth has been revised up to 3.0% in 2025 and 3.1% in 2026, reflecting stronger than expected front loading, lower tariff rates compared to early April, easier financial conditions, including a weaker US dollar and fiscal expansion in some jurisdictions. Still, projections remain about 0.2 percentage point below our pre-April 2nd forecasts, indicating that the trade tensions are hurting the global economy. Global inflation continues to decline, reaching 4.2 percent in 2025 and 3.6 percent in 2026,' said Pierre-Olivier Gourinchas the IMF's Chief Economist. Gourinchas added that overall, risks to the outlook remain tilted to the downside, as in the April WEO. 'Risks remain tilted to the downside. A breakdown in trade talks or renewed protectionism could dampen growth globally and fuel inflation in some countries. Persistent uncertainty may weigh on investment, while geopolitical tensions and fiscal vulnerabilities pose additional threats. Financial conditions have eased, but they could tighten abruptly, especially in case of threats to central bank independence. On the upside, breakthroughs in trade negotiations could boost confidence and structural reforms could lift long term productivity,' added Gourinchas. In terms of advice to policy makers, economic policies need to bring confidence, predictability, and sustainability by calming tensions, preserving price and financial stability, restoring fiscal buffers, and implementing much-needed structural reforms. 'Reducing policy uncertainty is essential. This is especially true for trade policy, where the global economy needs clear, transparent and predictable rules. Many countries need to address fiscal vulnerabilities and rebuild fiscal buffers even if they face increased spending needs. Central banks must maintain price and financial stability while preserving independence. Exchange rate flexibility remains key, even if some tailored interventions may be appropriate in certain cases in line with our integrated policy framework. Finally, structural reforms that ease policy tradeoffs and support long term growth remain essential to long term prosperity,' said Gourinchas.
