India expected to overtake Japan as world's 4th largest economy in 2027: IMF
Summary
The IMF expects India to overtake Japan as the world’s fourth-largest economy in 2027, with India’s GDP projected to reach $4.52 trillion. Japan is set to fall to sixth place as aging demographics, higher energy costs and inflation weigh on growth, while tech stocks dragged down Tokyo’s Nikkei index.
Key Points
- The IMF projects India will become the world’s fourth-largest economy in 2027, overtaking Japan.
- India’s GDP is forecast to reach $4.52 trillion, supported by strong growth and solid fundamentals.
- Japan’s growth is expected to slow to 0.7% in 2026 amid aging demographics, higher energy prices and inflation.
- Tokyo’s Nikkei fell nearly 5% as tech stocks slid on doubts about AI-sector profitability.
