IMF projects India, Britain to surpass Japan in GDP rankings in 2027

The International Monetary Fund’s most recent forecasts suggest that India and Britain will overtake Japan in the nominal gross domestic product (GDP) rankings by 2027, which will cause the Asian economy to drop to sixth place worldwide.

The International Monetary Fund’s latest World Economic Outlook, published this week, predicts that India’s nominal GDP will reach $4.52 trillion by 2027 and thus will be in fourth place, after the United States, China and Germany, while Britain’s economy is expected to grow to $4.49 trillion and Japan’s GDP is forecast to be $4.47 trillion, which will put it in sixth position.

The new figures represent a departure from the IMF’s previous forecasts, which had anticipated that Britain would overtake Japan in 2029. The updated assessment is due to differing rates of economic growth and the effects of changes in currency values, especially the yen’s weakness compared to the US dollar, the Japan Times reported.

India’s economy is expected to grow by 7 per cent in both 2026 and 2027 on the back of strong domestic demand and activity in the services sector, while Japan’s growth is projected to be 0.7 per cent in 2026 because higher energy prices and inflation are having a negative impact on the economy.

The International Monetary Fund has also increased its forecast for global growth in 2026 to 3.1 per cent, on the basis of strong investment in artificial intelligence, while cauting that geopolitical tensions, high energy prices and rising debt present risks to the outlook.