IMF raises eurozone growth forecast, highlights sharp decline in French economy
France's gross domestic product is expected to rise by just 0.4% in 2026, down from 0.9% in 2025, according to projections from the International Monetary Fund released Tuesday.
On Tuesday, the International Monetary Fund (IMF) announced an increase in its global growth forecast for 2026, raising it by 0.1 percentage point to 3.1%. This projection is detailed in the IMF's latest World Economic Outlook, titled "Resilience Under Strain, Urgent Choices." In the report, the IMF anticipates global growth to decline from 3.5% in 2025 to 3.1% in 2026, before resuming an upward trajectory to 3.4% in 2027.
The projected growth for 2027 remains unchanged from July but is 0.2 percentage points higher than the April estimate.
Growth in advanced economies is expected to increase to 2.1% in 2026, but it is anticipated to decelerate to 1.8% in 2027. Conversely, emerging market and developing economies are forecast to see a slowdown to 3.7% in 2026, followed by a rebound to 4.4% in 2027. The IMF explained that the global economy is undergoing growth reallocation, influenced by each country's exposure to the war-driven energy shock and AI-related demand.
IMF Managing Director Kristalina Georgieva highlighted during the annual IMF and World Bank Group Annual meetings in Bangkok, Thailand, that the acceleration of investment in AI infrastructure is a crucial factor in maintaining global economic growth near 3%. The report also projected global headline inflation to increase from 4.1% in 2025 to 4.7% in 2026, but then decrease to 4.1% in 2027.
Written by urgent.news from KBC's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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