The latest International Monetary Fund (IMF) World Economic Outlook report underscores a global shift in manufacturing from advanced economies to emerging markets, particularly India and China. According to the IMF, these markets are gaining a competitive advantage, positioning themselves as crucial players in the global manufacturing sector. This trend comes as advanced economies struggle to maintain competitiveness, marking a vital shift in production dynamics worldwide.
India’s economy, however, is expected to see a slight deceleration in growth, with GDP projected to moderate to 7% in 2024 and 6.5% in 2025 as pandemic-driven demand subsides. While India’s growth remains robust, this moderation aligns with a broader global trend in manufacturing shifts, reflecting evolving economic strengths in emerging markets and pointing to increased production capabilities and investment opportunities in these regions.
In addition to manufacturing shifts, the IMF report highlights a significant change in consumer spending patterns from goods to services, which is boosting growth in the services sector across both advanced and emerging markets. This trend reflects broader economic adjustments as consumers prioritize experiences and services, influencing long-term growth strategies and economic outlooks in various global markets.
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