IMF lowers 2026 global growth forecast to 3%
The IMF has revised its worldwide economic outlook downward for 2026 to 3% due to escalating risks, while Foreign Portfolio Investors withdrew Rs 13,138 crore from Indian equities in early September amid rising energy costs.
The International Monetary Fund reduced its global growth forecast for 2026 to 3%, citing uncertainty and risks stemming from the ongoing conflict in Iran. This represents the second downward revision of the projection issued this year. Simultaneously, foreign portfolio investors withdrew Rs 13,138 crore from Indian equity markets during the first two weeks of September 2026. This net outflow marks a shift after earlier inflows in July and August totaling over Rs 59 billion combined. Consequently, total FPI withdrawals from Indian equities reached Rs 2.37 lakh crore by mid-September, surpassing the entire amount removed in 2025. Vedant Gupte of Trackk stated that this September selling was driven by global factors rather than domestic concerns. Specifically, firming US bond yields, a stronger dollar, and higher crude oil prices impacted emerging markets. Brent crude reached USD 109.97 per barrel on Friday.
