The International Monetary Fund is slightly more optimistic about the euro zone’s economic growth this year, now forecasting a GDP expansion of 0.7% and ruling out that Germany and Italy will enter a recession.
In the update of the “Global Economic Forecasts” (WEO, its acronym in English), the International Monetary Fund (IMF) predicts that the economy of the euro zone will grow 0.7% this year, more 0.2 percentage points (p.p.) than estimated in October, but below the 3.5% projected for 2022.
Justifying the upward revision is, according to the IMF, the effects of the rapid rise in interest rates by the European Central Bank (ECB) and the erosion of real incomes, offset by the dragging effect of the 2022 results, lower energy prices and additional announcements of support in the form of energy price controls and cash transfers.
As for 2024, the institution led by Kristalina Georgieva is slightly more pessimistic and cut by 0.2 p.p. the projection to 1.6%.
In the update of the “Global Economic Forecasts” (WEO, its acronym in English), the International Monetary Fund (IMF) predicts that the economy of the euro zone will grow 0.7% this year, more 0.2 percentage points (p.p.) than estimated in October, but below the 3.5% projected for 2022.
Justifying the upward revision is, according to the IMF, the effects of the rapid rise in interest rates by the European Central Bank (ECB) and the erosion of real incomes, offset by the dragging effect of the 2022 results, lower energy prices and additional announcements of support in the form of energy price controls and cash transfers.
As for 2024, the institution led by Kristalina Georgieva is slightly more pessimistic and cut by 0.2 p.p. the projection to 1.6%.
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