IMF updates eurozone forecasts

The International Monetary Fund (IMF) has updated its economic outlook for the eurozone, increasing its growth projections for 2026 while reducing expectations for France. The revision, published on October 13, reflects a more optimistic view of the European Monetary Union, with the exception of France.

Eurozone growth improves

The IMF now forecasts 1.1% growth for the eurozone in 2026, up 0.2 percentage points from its July forecast. This improvement is largely due to stronger performance in major economies like Germany, Spain, and Italy, which are seen as key drivers of the region's economic recovery.

France faces slower growth

France, the second-largest economy in the eurozone, is projected to grow by only 0.4% in 2026 and 0.7% in 2027, each 0.2 percentage points lower than previously expected. The downward revision is linked to ongoing budgetary challenges and uncertainty surrounding the upcoming presidential election.

Global economic outlook

Globally, the IMF has slightly increased its 2026 growth forecast to 3.1%, with an expected rise to 3.4% in 2027. This optimism is driven by strong performance in advanced economies, especially in Asia, though emerging markets face headwinds from rising energy prices linked to the Middle East conflict.

Dual forces shaping the economy

Silvana Tenreyro, the IMF’s new chief economist, highlighted two key forces influencing the global economy: rising energy prices causing inflation and increased investments, particularly in artificial intelligence, spurring economic demand.