Economic Predictions: Uncertainty Looms for 2025

IMF Managing Director Kristalina Georgieva predicts a weaker Indian economy in 2025 amid global growth. She highlights uncertainties surrounding US trade policy and regional divergences in economic performance. Inflation challenges persist in Brazil and China, while low-income countries might face adverse impacts from new economic shocks.

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has forecasted a somewhat weaker trajectory for the Indian economy in 2025 despite overall global growth stability.

During her annual media roundtable, Georgieva expressed significant concerns over global uncertainties driven mainly by the United States' trade policies. She pointed out the varied regional economic performances, noting that while the US economy is outperforming expectations, the European Union is stagnating, and India shows signs of weakening.

The IMF also reported inflationary pressures in Brazil and deflationary trends in China, alongside ongoing domestic demand issues. In the backdrop of these challenges, lower-income nations remain vulnerable to any new economic disturbances, with global policy decisions, particularly from the US, being closely watched.

(With inputs from agencies.)