The International Monetary Fund (IMF) has revised its predictions for global economic growth, citing strong performance in the United States and emerging markets such as India and Brazil. Additionally, the outlook for Belgium has improved, although this trend does not extend to the entire eurozone.
In its latest ‘World Economic Outlook’, the IMF now forecasts that the world economy will grow by 3.2 percent this year, up from 3.1 percent in January. While 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, 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.
The IMF chief economist Pierre-Olivier Gourinchas noted that despite these improvements, growth in the eurozone remains low due to past shocks and tight monetary policies that continue to weigh on economic activity. However, he also highlighted some positive developments in smaller eurozone countries like Portugal and Belgium, where growth is expected to be stronger than in other parts of the region.
Overall, while there are signs of improvement in some economies, the global economic outlook remains uncertain due to challenges such as low productivity and trade tensions that could dampen growth in the medium term.
