{"id":579180,"date":"2026-07-10T19:48:28","date_gmt":"2026-07-10T19:48:28","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/579180\/"},"modified":"2026-07-10T19:48:28","modified_gmt":"2026-07-10T19:48:28","slug":"imf-and-adb-both-trim-indias-growth-outlook-pinning-the-cut-on-post-war-energy-costs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/579180\/","title":{"rendered":"IMF and ADB both trim India\u2019s growth outlook, pinning the cut on post-war energy costs&#8221;"},"content":{"rendered":"<p><strong>Growth trimmed:<\/strong> India remains the world\u2019s fastest-growing major economy, but two multilateral organizations \u2013 the International Monetary Fund (IMF) and the Asian Development Bank (ADB) \u2013 have turned more cautious on the near-term outlook, citing rising energy costs and global uncertainty after the Iran war.<\/p>\n<p><strong>What changed:<\/strong> India may grow at 6.4% in 2026, as against earlier projection of 6.5% seen in April, as per the IMF\u2019s latest <a href=\"https:\/\/www.imf.org\/-\/media\/files\/publications\/weo\/2026\/update\/july\/english\/text.pdf\" target=\"_blank\" rel=\"nofollow noopener\">World Economic Outlook Update<\/a>. The country\u2019s economy, however, is seen growing at a rate of 6.7% in 2027. The Fund said strong private consumption and service activities should continue to underpin growth despite a challenging external environment.<\/p>\n<p><strong>The ADB, however, is more bearish in its outlook and has trimmed the FY 2027 growth forecast to 6.6%<\/strong> from 6.9% in its recent <a href=\"https:\/\/www.adb.org\/sites\/default\/files\/publication\/1155601\/asian-development-outlook-july-2026.pdf\" target=\"_blank\" rel=\"nofollow noopener\">Asian Development Outlook report<\/a>. It attributed the slowdown to higher crude oil prices and transportation costs following the Middle East conflict, warning that elevated energy prices could erode real incomes and weaken consumer sentiment. The ADB also raised its FY 2027 inflation forecast to 5.2%.<\/p>\n<p><strong>The bigger picture:<\/strong> The downgrades are modest, but they reflect the growing impact of external risks on India\u2019s economy. As a major energy importer, India is vulnerable to oil price shocks and geopolitical disruptions in the Gulf, even as resilient domestic demand continues to underpin long-term growth prospects.<\/p>\n<p>^^<strong>We have more on IMF\u2019s growth forecast for the MENA region<\/strong> in this afternoon\u2019s Planet Finance.<\/p>\n<p>\n\tRelated<\/p>\n","protected":false},"excerpt":{"rendered":"Growth trimmed: India remains the world\u2019s fastest-growing major economy, but two multilateral organizations \u2013 the International Monetary Fund&hellip;\n","protected":false},"author":2,"featured_media":579181,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[79,179,18,9207,19,113306,17,2092],"class_list":["post-579180","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-eire","tag-gdp","tag-ie","tag-india-gdp","tag-ireland","tag-macroeconomics"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116897415415069121","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/579180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=579180"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/579180\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/579181"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=579180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=579180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=579180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}