New Delhi, July 29 -- Resilience in large economies prompted the International Monetary Fund (IMF) to nudge its forecast for global growth higher on Tuesday, even as it warned that the recovery remains vulnerable to policy uncertainty and trade tensions. Still, the IMF flagged significant risks, warning that if US tariffs rise again after 1 August without new agreements, global output could shrink, exposing the fragile nature of the recovery.

The world economy may expand by 3% in 2025 and 3.1% in 2026, IMF said in the July update to its World Economic Outlook (WEO), up 0.2 and 0.1 percentage points respectively from its April forecast. The IMF also raised its FY26 growth forecast for India to 6.4%, up from 6.2%, and revised its FY27 proj...