The International Monetary Fund (IMF) has projected stable global economic growth of 3.3% in 2026 and 3.2% in 2027. This matches the estimated growth of 3.3% in 2025, according to the January update of the World Economic Outlook released on Tuesday. The 2026 forecast marks an upward revision of about 20 basis points, or 0.2%, from the October projection.
The IMF said global growth remains resilient due to strong technology-related investments, especially in artificial intelligence. These investments are supported by fiscal and monetary policy measures, easy financial conditions, and a resilient private sector in North America and parts of Asia. At the same time, the report cautioned that shifting trade policies and high policy uncertainty continue to pose risks.
India’s growth outlook has also been revised upward. The IMF now expects the Indian economy to expand by 6.4% in FY26 and FY28, following a stronger-than-expected performance in FY25. Growth for FY26 has been revised up to 7.3%. On a calendar-year basis, India is projected to grow by 6.3% in 2026 and 6.5% in 2027, maintaining its strong momentum.
On inflation, the IMF expects global headline inflation to soften from an estimated 4.1% in 2025 to 3.8% in 2026 and further to 3.4% in 2027. Growth in advanced economies is projected to remain modest at around 1.8% in both 2026 and 2027.
The US economy is forecast to grow by about 2.4% in FY26. This growth is expected to be supported by fiscal policy measures and lower policy rates as global inflation pressures ease.
In Europe, the euro area is expected to record growth of 1.3% in 2026 and 1.4% in 2027, reflecting ongoing structural challenges. Japan’s economy is projected to slow, with growth of 0.7% in 2026, partly supported by fiscal stimulus announced by its new government.
Emerging market and developing economies are expected to grow at slightly above 4% in both 2026 and 2027. China’s growth forecast for 2026 has been revised up to 4.5%, driven by stimulus measures and lower effective US tariffs following a trade truce.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
