The International Monetary Fund (IMF) projects that the Eurozone will grow by 0.9% this year, a downward revision from its April estimate, while maintaining its 2027 growth forecast at 1.2%, according to its latest World Economic Outlook report released today.
The 2026 forecast is 0.2 percentage points lower than estimated in April, reflecting a significant negative carry-over effect from the first quarter.
According to the IMF, this impact was largely driven by Ireland, alongside a broader sluggish pace of activity across other regions, the ongoing negative impact of higher energy prices despite fiscal cushioning measures, and low consumer confidence.
The update provides individual projections for the block’s largest economies, showing mixed adjustments across member states:
Read more: Macau: IMF raises growth forecast to 3% for 2026
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Germany: Projected to grow by 0.7% this year (a 0.1 percentage point downgrade) and 1% in 2027 (a 0.2 percentage point downgrade).
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France: Faced a 0.3 percentage point downgrade, with growth now projected at 0.6% for this year.
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Spain and Italy: Growth projections remain unchanged for this year, holding steady at 2.1% and 0.5% respectively.
