OECD’s Economic Outlook, Interim Report September 2025: Flags Global Slowdown, India Stands Out with Strong Growth
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Finance | Reserve Bank of India
The OECD’s Economic Outlook, Interim Report – September 2025 provides an update on global growth trends, inflation, and risks for the world economy. The current interim report is a mid-year update to its twice-yearly global forecasts. It highlights that global GDP is expected to slow from 3.3% in 2024 to 3.2% in 2025 and 2.9% in 2026. Inflation is easing but remains sticky in many advanced economies, while global trade continues to face pressure from rising tariffs and policy uncertainty. The OECD stresses that clearer trade rules, cautious monetary easing, and structural reforms, especially in skills, technology, and competition are critical to sustain growth.
Against this backdrop, India emerges as a bright spot. The report projects India’s GDP to grow 6.7% in 2025 (up from 6.5% in 2024), before moderating to 6.2% in 2026. This upward revision of +0.4 percentage points from June makes India the fastest-growing major economy in the G20. Growth is expected to be supported by fiscal and monetary easing, GST reforms, and strong public investment, although higher tariffs may limit export performance. Inflation is forecast to decline sharply to 2.9% in 2025, before rising moderately to 3.9% in 2026, driven by effective food supply management and restrictions on food exports.
The Interim Outlook shows both opportunities and risks for India. Low projected inflation gives policymakers room to support demand and reforms, but global headwinds and tariff-related frictions could challenge export competitiveness. For India, the key policy question is how to sustain high growth without undermining fiscal stability or global trade integration.
Follow the full report here: OECD Economic Outlook, Interim Report September 2025