The International Monetary Fund (IMF) has revised its forecasts for global economic growth, citing strong performance in the United States and emerging economies like India and Brazil. The outlook for Belgium has also improved, but this positive trend does not extend to the entire eurozone.
In its latest ‘World Economic Outlook’, the IMF now predicts that the world economy will grow by 3.2 percent this year, up from the 3.1 percent forecast in January. The forecast for 2025 remains steady at 3.2 percent. However, the IMF warns that high borrowing costs and the withdrawal of government support may hinder short-term growth, while medium-term forecasts are subdued due to low productivity and global trade tensions.
While the United States is expected to see significant economic growth this year, with forecasts jumping from 2.1 percent in January to 2.7 percent, the eurozone faces a more challenging outlook. Growth in the eurozone is projected to be just 0.8 percent this year and 1.5 percent in 2025, down from previous estimates of 0.9 percent and 1.7 percent, respectively.
The IMF chief economist Pierre-Olivier Gourinchas noted that growth in the eurozone remains low, citing past shocks and tight monetary policies as factors that continue to weigh on economic activity. However, there are some positive developments in smaller eurozone countries like Portugal and Belgium, with Belgium expected to see growth of 1.2 percent in both 2024 and 2025.
Overall, while there are signs of improvement in some economies
