The International Monetary Fund (IMF) has slightly upgraded its global economic growth forecasts, citing strong performance in the United States and emerging economies like India and Brazil as the driving forces behind the improvement. Despite this positive outlook, high borrowing costs and reduced government support could dampen short-term growth. Meanwhile, long-term growth prospects remain at some of the lowest levels in decades due to weak productivity and ongoing global trade tensions.
The latest ‘World Economic Outlook’ from the IMF reveals that the global economy is projected to grow by 3.2 percent this year, up from 3.1 percent forecasted in January. While the United States is expected to see a significant increase in economic growth (from 2.1 percent in January to 2.7 percent now), the eurozone’s outlook remains less optimistic. The region is projected to grow by only 0.8 percent this year and 1.5 percent in 2025, a slight improvement from previous forecasts but still reflecting challenges from past shocks and restrictive monetary policies.
Within the eurozone, growth prospects vary by country. Germany, the largest economy in the region, is expected to see minimal growth this year (0.2 percent), down from its previous forecast of 0.5 percent
