The International Monetary Fund (IMF) has released its latest forecasts for global economic growth, with a slightly positive outlook. The world economy is now projected to grow by 3.2 percent in 2023, up from the previous forecast of 3.1 percent in January. However, the IMF warns that high borrowing costs and a withdrawal of government support may hinder short-term growth, while medium-term forecasts remain subdued due to low productivity and trade tensions.
While some countries like the United States and emerging economies such as India and Brazil are expected to see strong economic growth this year, 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 earlier estimates of 0.9 percent and 1.7 percent, respectively.
Despite these challenges, 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 while growth in the eurozone remains low due to past shocks and tight monetary policies, there are signs of improvement in smaller countries within the region.
Overall, while there are signs of progress in some areas of the global economy, uncertainties remain regarding long-term growth prospects due to ongoing challenges such as low productivity and trade tensions.
In its latest ‘World Economic Outlook’, the International Monetary Fund (IMF) has revised its forecasts for global economic growth upwards for both this year and next year compared to those made at the start of the year.
The IMF now predicts that global economic growth will reach an estimated 3.2% this year instead of its initial estimate of 3.1%, while for next year it has been revised from a previous estimate of
