U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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Sustaining Momentum: Insights into India's Economic Growth Trajectory

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 Introduction:

The Indian economy has demonstrated remarkable resilience, showcasing a robust growth trajectory amidst global uncertainties. With a GDP growth rate of 7.6% in FY 2023-24, surpassing the previous fiscal year's figures, India continues to stride forward, propelled by key sectors such as construction and manufacturing.

Growth Drivers:
The construction sector emerged as a standout performer, achieving a commendable double-digit growth rate of 10.7%, while the manufacturing sector exhibited strong growth at 8.5%. These sectors have been pivotal in driving economic expansion, creating employment opportunities, and fostering infrastructure development.

Quarterly Performance:
In the third quarter of FY 2023-24, the Real GDP witnessed a notable uptick, registering a growth rate of 8.4%. This uptrend underscores the resilience and underlying strength of the Indian economy, buoyed by strategic policy interventions and dynamic business environment.

State Ambitions and Realities:
Despite ambitious targets set by various Indian states to attain $1 trillion economies, the road to realization presents formidable challenges. Maharashtra, Uttar Pradesh, Tamil Nadu, and Karnataka have outlined ambitious timelines ranging from 2027-28 to 2030. However, the intricate interplay of factors such as infrastructure bottlenecks, regulatory hurdles, and economic uncertainties may impede the timely achievement of these goals.

Per Capita Income Trajectory:

India's per capita net national income has exhibited a promising trajectory, reflecting significant growth. With an estimated annual per capita income of ₹1,72,000 in 2022-23, marking a substantial increase compared to 2014-15, this trend underscores the expanding economic opportunities and rising living standards for Indian citizens.

Public Sector Dynamics:
The public sector continues to play a significant role in India's economic landscape, contributing 20% to the national income and accounting for 40% of total wages. Its robust participation underscores the importance of public-private partnerships and strategic collaborations in driving inclusive growth and socio-economic development.

Conclusion:
India's economic growth story reflects a blend of resilience, dynamism, and strategic foresight. While challenges persist, the nation's steadfast commitment to reform, innovation, and sustainable development bodes well for its future trajectory. By addressing key bottlenecks, fostering conducive business environments, and leveraging demographic dividends, India is poised to chart a trajectory of inclusive and sustainable growth in the years ahead.

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