The World Bank has reduced its 2026 global growth forecast to 2.5%, citing Middle East conflict, rising energy prices, and market uncertainty. India remains the fastest-growing major economy, projected at 6.6% for FY26-27.
South Korea's fiscal deficit for January-April reached its smallest size in seven years, totaling 13.2 trillion won. Despite increased spending, robust tax revenues, particularly from corporate and income taxes, led to a significant improvement in the fiscal balance.
India's fiscal deficit reached the budgeted 4.4% of GDP for FY26, easing immediate financial concerns. However, rising subsidy costs due to the West Asia crisis may challenge the current year's target and next year's ambitious consolidation goal.
