Published
March 31, 2026 8:36 am
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By
Julia Wendling
Design
- Jennifer West
The following content is sponsored by Hinrich Foundation
The Fastest-Growing Major Economies in 2025 & 2026
Key Takeaways
- India leads global growth, with GDP forecast at 6.6% in 2025 and 6.2% in 2026, well ahead of all major economies.
- Southeast Asia remains resilient, with Indonesia sustaining 4.9% growth across both years.
- Advanced economies lag behind, with the U.S. (~2%) and Europe (~1% or less) highlighting a widening global growth divide.
As the global economy adjusts elevated levels of geopolitical uncertainty, growth is becoming increasingly uneven. This divergence is reshaping where economic power and opportunity will emerge in the years ahead.
This graphic, created in partnership with the Hinrich Foundation, provides visual context to the economies driving global growth in 2025 and 2026.
Data comes from the IMF’s World Economic Outlook. It’s part of a deep dive report, India’s Reckoning: How geopolitics and trade are testing India’s development strategy and the global balance of power.
Emerging Markets Drive Global Growth
The global economy is entering a phase of uneven expansion. Emerging markets are firmly in the driver’s seat, according to IMF projections.
India stands out as the fastest growing major economy, projected to expand at more than triple the pace of most developed nations (6.2% in 2026).
| Country | Real GDP Growth 2025 (%) | Real GDP Growth 2026 (%) |
|---|---|---|
| India | 6.6 | 6.2 |
| Indonesia | 4.9 | 4.9 |
| China | 4.8 | 4.2 |
| Brazil | 2.4 | 1.9 |
| U.S. | 2.0 | 2.1 |
| UK | 1.3 | 1.3 |
| Japan | 1.1 | 0.6 |
| France | 0.7 | 0.9 |
| Russia | 0.6 | 1.0 |
| Germany | 0.2 | 0.9 |
Close behind, Indonesia and China are expected to maintain strong momentum, with expansion rates above 4% for 2025 and 2026.
A Widening Growth Gap
In contrast, advanced economies are facing slower, more constrained growth. The U.S. is forecast to grow modestly at around 2%, while countries like Japan, France, and Germany are expected to hover below 1% for 2026.
This divergence reflects structural differences, from demographics and productivity to investment cycles, and signals a broader shift in where future economic expansion will occur.
For investors and policymakers, this growing gap underscores the importance of looking beyond traditional markets for opportunities.
Go Deeper
India’s rise is reshaping the global economic landscape. But as growth accelerates, the country faces a reckoning: translating economic scale into shared prosperity while navigating intensifying geopolitical competition.
Explore the Full Report
Related Topics: #india #GDP #emerging markets #economy #Hinrich Foundation #2026
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