India poised to replace Japan as world’s 4th-largest economy this year: IMF

India is poised to become the world’s fourth-largest economy in 2025, with the country’s nominal GDP rising to $4,187.017 billion during the year to surpass Japan’s GDP pegged at $4,186.431 billion, according to the IMF’s World Economic Outlook report. 

According to the report, India continues to remain the world’s fastest-growing major economy and the only country expected to clock over 6 per cent growth in the next two years.

Japan, on the other hand, is expected to be hard hit by the global trade war, with its growth stagnating at 0.6 % for 2025 and 2026.

The high rate of growth will see India’s GDP increasing to $5,584.476 billion in 2028 as it overtakes Germany to become the third largest economy.

The IMF has projected a zero growth rate for Germany in 2025, followed by 0.9 % in 2026, as it is expected to be hit the hardest among the European countries due to the ongoing global trade war. Germany’s GDP is projected at $5,251.928 in 2028.

The GDP of the USA, the world’s largest economy, has been pegged at $30,507.217 billion for 2025, while that of China, the second biggest, is $19,231.705 billion.

The US, which has triggered tariff turmoil across the globe, is expected to see its GDP growth slowing to 1.8 % this year, which is expected to decline further to 1.7 % in 2026, according to the IMF report.

Similarly, the Euro Area is forecast to slow to a mere 0.8 per cent growth rate in 2025 before it makes a mild recovery at 1.2 % in 2026. France is predicted to post a 0.6% and 1% growth for the next two years, respectively.

Spain is expected to do better than the others in 2025 as the only European country to clock a 2.5 % growth rate. However, it is seen slowing down to 1.8 per cent in 2026. The UK is expected to post a 1.1% and 1.4 % growth, respectively, for the next two years.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)