S&P Global cut its outlook for global real GDP growth to nearly 2.4% in 2026, down from 2.6% in its March forecast, citing higher energy prices, persistent geopolitical tensions, and weaker demand. The firm expects only a modest rebound in 2027 to about 2.7%. In Asia-Pacific, growth was revised lower on energy import exposure. For India, real GDP growth for FY 2026–27 was reduced to around 5.9%, driven by inflation, currency pressure, and costlier energy imports.
S&P Global Market Intelligence has cut India’s FY27 growth forecast to 6.6%, citing fallout from the Iran war. The report warns that geopolitical stress is tightening fiscal space, limiting capital expenditure and potentially constraining infrastructure spending. While medium-term strength may come from services, manufacturing, and AI, debt-to-GDP is expected to climb in the near term.
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