“Low-income countries, despite all the efforts they make, are in a position where any new shock could hit them quite negatively,” Georgieva told news agency PTI.International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Friday that the Indian economy is expected to be “slightly weaker” in 2025, as she expected a lot of uncertainty in the world this year, especially around US trade policy.
“The US is doing a lot better than we previously expected, the EU is a bit stuck, and India is a bit weaker,” Georgieva said without elaborating.
In her annual media roundtable with a group of reporters on Friday, she said global growth in 2025 is expected to be stable, but with regional differences.
She also said China is witnessing deflationary pressures and persistent domestic demand problems.
“Low-income countries, despite all the efforts they make, are in a position where any new shock could hit them quite negatively,” Georgieva told news agency PTI.
“What we expect in 2025 is that there will be quite a bit of uncertainty, especially in terms of economic policy. Not surprisingly, given the size and role of the U.S. economy, there is great global interest in the new administration’s policy directions. particularly in the areas of tariffs, taxes, deregulation and government efficiency,” she further said.
“This uncertainty is particularly high over future trade policy, contributing to the headwinds facing the global economy, especially for countries and regions that are more integrated into global supply chains, mid-market economies and (and) Asia as a region. ‘, said the director of the IMF.
India’s economy is expected to slow to a four-year low in 2024-25 due to moderation in output and sluggish investment, while robust growth in the agricultural sector is expected to provide some support and boost rural consumption will help stimulate.
Initial estimates for the current fiscal year, released by the National Bureau of Statistics (NSO) on Tuesday, show that gross domestic product (GDP) is estimated to grow by 6.4 percent, well down from 8.2 percent recorded in 2023-2024. .
A recent report from the Ministry of Finance said that a combination of the central bank’s monetary policy and macroprudential measures, as well as structural factors, could have led to the slowdown. All eyes are now on the February 1 Budget for measures to revive demand and boost growth. against the backdrop of global uncertainty and geopolitical tensions.
