India is expected to remain the fastest-growing major economy with a 6.5 per cent growth rate in 2025 while global growth is seen as marking a shift towards a recessionary path, according to the latest UN Trade and Development (UNCTAD) report.
India has been listed among the countries that are propelling growth with higher government expenditure and monetary policy stimulus in the report titled ‘Trade and Development Foresights 2025. The reduction in policy rate cut is anticipated to support household consumption and encourage private investment in India, according to the report, titled ‘Trade and Development Foresight — 2025 Under Pressure: Uncertainty Reshapes Global Economic Prospects’.
The report projected China’s growth rate at 4.4 per cent, while the US economy is expected to grow at 1 per cent. The growth for the European Union has also been projected at 1 per cent, although France, Germany and Italy are all expected to record below 1 per cent growth. Similarly, Japan’s economic growth rate is expected to come down to a mere 0.5 per cent.
Last week, the Reserve Bank of India’s (RBI) monetary policy committee (MPC) reduced the policy rate by 25 basis points to 6%, following a similar rate cut in February — the first in five years.
Economists expect further rate cuts by the MPC