Topic
gdp
Business US economy slows as GDP growth slips to 1.5%, consumers keep momentum alive
The US economy grew at an annual rate of 1.5% in Q2 2026, slowing from 2.1% in Q1 and missing expectations. Consumer spending accelerated to 3.2% but a surge in imports—up 11.5%—deducted 1.5 percentage points from growth. Inflation continued to ease, with the PCE index rising 3.7% year-on-year, still above the Fed's 2% target.
US economic growth slows to 1.5% in second quarter, missing analyst estimates
The US economy grew at an annual rate of 1.5% in the second quarter, according to the Commerce Department, down from 2.1% in the first quarter and below analyst expectations. The slowdown was driven by lower government spending, investment and exports, though consumer spending provided a boost. The Federal Reserve held interest rates for a fifth consecutive meeting, with Chairman Kevin Warsh warning of persistent inflation.
Business India's current account deficit likely to widen to 1.5% of GDP in FY27 as higher oil prices weigh: Report
According to a Crisil report, India's current account deficit is expected to widen to 1.5% of GDP in FY27 from 0.6% in FY26, driven by higher crude oil and commodity prices. The forecast follows official trade data showing the merchandise trade deficit widening to $30.4 billion in June. Crude oil prices are expected to average $82-87 per barrel this fiscal.
UK Economy Returns to Modest Growth in May After April Contraction, ONS Reports
The UK economy grew by 0.1% in May, driven by the services sector, after a slight contraction in April attributed to the US-Israel war with Iran, according to the Office for National Statistics. In the three months to May, the economy grew 0.7% compared with the previous three-month period.
Business IMF Says India Remains a Key Driver of Global Economic Growth
The International Monetary Fund has retained India's growth projection at 6.5% for fiscal year 2026-27, citing robust domestic demand and US tariff reductions. Director Julie Kozack noted India's economy outperformed expectations in Q1, while the IMF sees positive developments from the Middle East ceasefire and Strait of Hormuz reopening.
Business EY Forecasts India GDP Growth of 6.6-6.8% in FY27 on Resilient Domestic Demand, Lower Energy Prices
EY's Economy Watch expects India's real GDP to grow 6.6-6.8% in FY27, driven by resilient domestic demand, lower global energy prices, and normalisation of Strait of Hormuz shipments. CPI inflation is projected at 4.5% and the current account deficit at 1.5% of GDP.
Business Goldman Sachs and EY Raise India Growth Forecasts on Lower Crude Oil Prices
Goldman Sachs and EY revised India's growth forecasts upward on Friday, citing easing West Asia tensions and lower crude oil prices. Goldman Sachs raised its CY2026 real GDP growth forecast by 0.3 percentage points to 6.8%, while EY pegged 2026-27 growth at 6.6-6.8%. Both firms also lowered inflation and fiscal deficit estimates.
Business From Inflation to Mortgage Rates: Key Movements in the US Economy's Weekly Report Card
The US economy saw mixed signals this week: inflation accelerated to a three-year high, consumer spending slowed, but GDP growth beat expectations and layoffs remained low. Apple raised prices on Mac and iPad models due to AI-driven memory chip shortages. Mortgage rates ticked up slightly, while jobless claims fell below forecasts.
East-West split could cost world $6.9 trillion, WEF warns leaders
The World Economic Forum warns that a full economic decoupling between East and West could cost $6.9 trillion in lost GDP. Current fragmentation already reduces growth by $213–$307 billion and adds 0.2–0.3 percentage points to inflation. Emerging markets face the greatest impact, while US output growth is forecast to be 0.4–0.6 percentage points lower than projected.
Business India’s Economy Projected to Hit $7 Trillion by 2030, Double to $14 Trillion by Mid-2030s
At the IX USISPF Leadership Summit 2026, India’s ambassador to the US, Vinay Mohan Kwatra, projected India’s economy will reach $7 trillion by the end of this decade, double to $14 trillion by the mid-2030s, and eventually hit $25–30 trillion by 2047. Currently a $4.3 trillion economy, the roadmap underscores India’s long-term growth trajectory. Separately, US ambassador Sergio Gor indicated that an interim trade deal is close to finalization.
Business Trump Praises India's 7-8% Growth, Reversing 2025 'Dead Economy' Remark
US President Donald Trump praised India's economy as 'doing very well' with 7-8% growth in a CNBC interview, contrasting sharply with his 2025 'dead economy' remarks. The shift comes as US-India trade negotiations accelerate ahead of a July 24 tariff expiration, with implications for bilateral commerce and investment.
Business US Tops Global Economy But Debt Burden Poses Biggest Risk, Deutsche Bank Warns
A Deutsche Bank Research Institute report warns that the US's growing debt burden—with federal deficits at 5-6% of GDP and debt exceeding 100% of GDP—poses the biggest risk to its long-term economic leadership, potentially eroding the dollar's reserve status. Despite structural strengths in capital markets, technology, and AI, the report highlights imminent fiscal challenges including exhaustion of Social Security trust fund by 2032.
Business India's Economy Passed the Iran War Test, But El Niño Threatens Recovery
India's economy has emerged resilient after the US-Iran conflict, with Q1 FY2026-27 high-frequency indicators like GST collections (up 13.9% to Rs 1.95 lakh crore), vehicle sales (up 22% to 2.56 million units), and industrial production (up 5.1%) flashing green. However, a poor monsoon due to El Niño threatens food inflation and could dampen the recovery.
Business India's Real GDP Growth Likely at 6.6% in FY27 Amid Energy Stress, Weaker Monsoon: S&P Report
S&P Global Ratings projects India's real GDP growth at 6.6% for FY27, driven by resilient global activity and AI investment but tempered by energy stress, a weak monsoon, and rising inflation. Consumer inflation is expected to hit 5.1%, with a policy rate hike anticipated in the second half of the fiscal year.
Trade Brexit cost 6% of UK economy, Bank of England company data suggests, study finds
A study using internal Bank of England data on thousands of British companies estimates Brexit has cost the UK economy 6% of GDP over a decade. Half the hit came from post-referendum uncertainty, the rest from rising trade barriers after leaving the customs union and single market in 2021. Bank Governor Andrew Bailey acknowledged the negative impact on growth and export markets.
Trade Brexit Cost UK Economy 6% According to Bank of England Company Data Study
Economists analyzing Bank of England's Decision Maker Panel data found Brexit cost the UK economy 6% of GDP over ten years. Half the impact came from post-referendum uncertainty, half from rising trade barriers after 2021. The study used company-level data alongside five other methods, with an average estimate of 8%.
Business India Government Sees GDP Momentum Intact, No Extra Borrowing Needed Despite Middle East Crisis
The Indian government remains confident in its growth outlook despite rising fuel and fertiliser import costs from the Middle East crisis, with sources saying GDP momentum is intact and no additional borrowing is needed. The government targets a fiscal deficit of 4.3% of GDP for FY27 and plans to reassess macroeconomic conditions in July after Q1 growth data.
Business India Does Not Use Methodology Changes to Inflate Growth Numbers, CEA Nageswaran Defends GDP Data
Chief Economic Adviser V Anantha Nageswaran has defended India's GDP data, stating that the country does not use methodology or base-year changes to artificially inflate economic growth figures. In an ANI interview, he said GDP is an estimate, and India actually lowered its GDP figure after a recent rebasing exercise, contrary to many other nations. He also noted that international institutions like the IMF have only questioned methodology, not reliability, and that criticism often stems from unmet expectations.
Business World Bank Cuts Global Growth Forecast to 2.5% for 2026; India Retains Fastest-Growing Major Economy at 6.6%
The World Bank projects global growth of 2.5% in 2026, down from 2.9% in 2025, citing the Middle East conflict and rising energy prices. India's GDP is forecast to grow 6.6% in fiscal year 2026-27, making it the world's fastest-growing major economy, though higher energy costs and fiscal pressures pose risks.
Business Why the US economy keeps defying the odds: corporate investment and energy resilience drive outperformance
The US economy continues to grow at a steady pace despite global shocks such as trade tariffs, immigration changes, and Middle East conflict. Corporate capital expenditure remains high at 13.9% of GDP, productivity has risen, and energy independence from fracking has reduced vulnerability to oil price spikes. Cultural attitudes toward risk-taking and structural differences with Europe further explain the divergence.
Business UK Economy Contracts 0.1% in April as Services Output Falls
The UK economy shrank by 0.1% in April 2026, according to the Office for National Statistics, driven by a drop in services output. Construction output rose, partially offsetting the decline. In the three months to April, the economy grew 0.7% compared with the previous quarter.
Business Raghuram Rajan Questions India's Growth Data, Cites Weak Investment and FDI
Former RBI Governor Raghuram Rajan has questioned India's official economic growth figures, noting a persistent disconnect between headline GDP numbers and business behavior such as weak corporate investment and falling foreign direct investment. His remarks come as India reported 7.7% growth in FY 2025-26, but Rajan argues that investment decisions by companies suggest growth may be less robust. He also warns of risks from the Middle East conflict and rising oil prices.
Business India GDP Growth to Slow to 6.6% in FY27 on Weaker Consumption and Investments:
BMI forecasts India's economic growth will moderate to 6.6% in fiscal year 2026/27, a slowdown from the 7.7% recorded in FY26. The research firm attributes the deceleration to three factors: fading consumption boost from GST reforms, elevated inflation driven by the Strait of Hormuz disruption, and slowing investment growth. The rupee is expected to average 95.1/USD, supporting export competitiveness.
Business India's GDP Surges 7.8% in Q4 FY26, Outperforming Expectations
India's economy demonstrated robust growth in the fourth quarter of FY26, with GDP expanding by 7.8%, surpassing expectations. The full-year growth reached 7.7%, driven by strong performances in trade, hotels, and transport sectors.
Business India's GDP Growth Slows Amid Global Challenges
India's GDP growth is projected to have slowed to 7.2% in Q1 2026, impacted by weaker external demand and industrial activity. Despite challenges, India remains the fastest-growing major economy, with services growth expected to stay robust.
Business India's GDP Grows 7.7% in FY26; RBI Lowers FY27 Forecast
India's GDP expanded by 7.7% in FY26, driven by strong investment and sectoral growth. However, the RBI has revised its FY27 growth forecast down to 6.6%, citing global economic challenges.
Business India's GDP Growth Hits 7.7% in FY26, Modi Credits Reforms
India's GDP growth reached 7.7% in FY26, reflecting economic resilience and successful reforms. Prime Minister Narendra Modi attributes this growth to the hard work of 140 crore Indians and ongoing economic reforms.
Business India Achieves FY26 Fiscal Deficit Target of 4.4% of GDP
India has successfully met its fiscal deficit target of 4.4% of GDP for FY26, as per the Controller General of Accounts. This marks a significant improvement from the previous year's deficit of 4.8%. The achievement is attributed to effective fiscal management despite moderate tax buoyancy.