Moody’s Analytics has projected India’s economic growth to slow down to 6.4% in 2025 from 6.6% in 2024, mainly due to softening of global demand and “new tariffs”. The agency expects global growth to ease to 3.7% in 2025 and 3.5% in 2026 from an estimated 3.9% in 2024.
In its report, titled “Asia-Pacific (APAC) Outlook: Chaos Ahead”, Moody’s Analytics said growth across the Asia-Pacific economy will slow in 2025 as trade tensions, policy shifts, and uneven recoveries knock the region’s fortunes. “Growth across the region will slow as new tariffs and softening global demand weigh on exports,” the report said.
China will bear the brunt of escalating trade tensions with the US. “We see Chinese GDP growth slowing to 4.2% in 2025 and 3.9% in 2026 from 5% in 2024,” it said. Growth in India will creep into the low-6% range in coming years from 6.6% in 2024, it said, adding that high-income economies, Japan and Australia, will see modest improvements in 2025 as inflation recedes.
Currently, GDP in China, APAC’s largest economy, is about 1.2% of its pre-pandemic trend but roughly in line with the global average. India, trailing closely, is about 2% of its former trend but is gaining ground, the report stated.