IMF: Emerging economies are expected to grow by 3.7% this year and 3.9% in 2026.

The International Monetary Fund (IMF) has revised its 2025 economic growth forecasts for developing countries, including Mexico and China, indicating a downward trend. The IMF predicts that emerging economies will grow by 3.7% this year and 3.9% in 2026, marking a decrease of half a percentage point compared to its January projection. This decline can be attributed to tighter global financing conditions and reduced availability of development funds. Factors such as US President Donald Trump's high tariff policy and global policy uncertainty also contribute to these downward revisions. It is our duty to inform you that Mexico's growth projection has been reduced by 1.7 points. This will result in an expected contraction of 0.3% in 2025. Ongoing trade tensions with the US have led to a 0.6 point reduction in China's growth. The IMF emphasises that the risks remain predominantly oriented towards negative outcomes and cautions that developing countries possess diminished fiscal capacity relative to a decade ago, while the proportion of debt servicing relative to fiscal revenues is rising.

https://internasional.kontan.co.id/news/imf-ekonomi-negara-berkembang-hanya-tumbuh-37-tahun-ini-dan-39-pada-2026 

Trump says he has no plans to fire Powell, stock market responds positively

Despite previous comments on interest rate policies, US President Donald Trump has stated that he has no plans to dismiss Federal Reserve Chairman Jerome Powell. Trump has indicated that he would like Powell to adopt a more assertive approach in reducing interest rates. In response to this statement, financial markets reacted positively, with stock index futures rising by almost 2%. It is important to note that Trump's ongoing criticism of Powell over the Easter holiday period had previously resulted in a weakening of stocks, bonds and the dollar. However, analysts have interpreted Trump's latest statement as a positive signal, which has led to a reduction in concerns about potential risks such as stagflation or a sovereign debt crisis. Trump also expressed optimism about the potential of a trade deal with China to significantly reduce tariffs. Although the threat of firing Powell has been withdrawn, Trump's criticism of the Fed's interest rate policy remains strong.

https://internasional.kontan.co.id/news/trump-tegaskan-tidak-berencana-pecat-powell-pasar-saham-merespons-positif 

IMF cuts India's economic growth forecast to 6.2%

The International Monetary Fund (IMF) has downgraded India's economic growth forecast for the current fiscal year due to rising global trade tensions and economic uncertainty. In its World Economic Outlook report, the IMF said that India's growth forecast for the fiscal year beginning 1 April has been lowered to 6.2 per cent from 6.5 per cent. The IMF remains upbeat on India's growth prospects, saying it is relatively stable at 6.2% in 2025, supported by household spending, especially in rural areas. However, the downward revision in growth projections is attributed to concerns over trade tensions and global uncertainty, which are affecting not only India but several other countries. The report coincides with an increase in tariff retaliation, particularly between the US and its trading partners, which is weighing on market sentiment and international trade.

https://internasional.kontan.co.id/news/imf-pangkas-proyeksi-pertumbuhan-ekonomi-india-jadi-62