China and India Lead Global Growth Amid U.S. Slowdown: Amid escalating global trade tensions
and the protectionist measures adopted by the United States,
The International Monetary Fund (IMF) has revised its forecast for global economic growth in 2025 to 2.8%,
compared to a previous estimate of 3.3%.
The IMF’s latest report highlights significant shifts in global economic power,
placing China and India at the forefront of countries driving growth.

At the same time, the report projects a noticeable decline in the role of the United States.

Reinforcing the trend of growth concentration in a few major economies.

Content

Details

Details

The International Monetary Fund (IMF) lowered its forecast for global economic growth in 2025 to 2.8%,
cutting it from the 3.3% projected in January.
This revision follows rising global trade tensions, which U.S. President Donald Trump intensified by announcing broad tariffs.

Although the U.S. temporarily eased some of these tariffs,
the growing uncertainty has prompted the IMF to swiftly reassess its outlook.

In its updated World Economic Outlook report, the IMF emphasized that China and India
will play an increasingly prominent role in driving global economic
activity in the years ahead while reducing its projections for the U.S. contribution.
The report also shows that just 25 leading economies will account for nearly 80% of global growth,
underlining how economic momentum is becoming more concentrated in the world’s largest nations.

Purchasing power parity calculations reveal that China will become the largest contributor
to global growth over the next five years, raising its share to 23%, up from a previous estimate of 21.7%.

Meanwhile, India will raise its contribution to over 15% by 2030,
whereas the United States will see its share fall to 11.3%, down from the earlier projection of 11.6%.
Despite this decline, the U.S. will still contribute more to global growth than the European Union,
and the gap between them will widen slightly in the coming years.

This trend underscores how geopolitical shifts and the ongoing trade
war are reshaping the dynamics of the global economy.

China and India Lead Global Growth Amid U.S. Slowdown

China and India Lead Global Growth Amid U.S. Slowdown

Related Topics