New Delhi, May 2 || The seismic shift in the US trade policy will slow world economic growth, with all regions being affected negatively, according to an S&P Global report released on Friday.
While India and Japan are expected to slow down by 0.2 to 0.4 percentage points in 2025-26, China is expected to take a 0.7 percentage points hit to its GDP growth.
In emerging markets (EM), more open Asia-Pacific economies, such as Malaysia, Vietnam, Thailand and Singapore, see the biggest decline in GDP growth, falling by 0.5-1.0 percentage points per year.
“Relative to our previous forecast round, the US GDP growth falls by about 60 basis points (0.6 percentage points) over 2025-2026, while Canada's and Mexico's GDP growth falls by a similar amount,” the S&P Global report stated.
The Eurozone GDP growth is about 0.2 percentage points lower over the next two years, with Germany taking the biggest hit among the major economies, according to the report.