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International Monetary Fund: Growth in the Eurozone has declined.  The German economy is in contraction

International Monetary Fund: Growth in the Eurozone has declined. The German economy is in contraction

Compared to last June, the International Monetary Fund’s new estimates for eurozone growth expect a general slowdown in the economy in 2023 and 2024. Germany’s GDP will be -0.5% in 2023.

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The global economy remains resilient despite a number of challenges, but some countries are growing faster than others, with China showing signs of slowing.

However, the eurozone will grow less this year than initially expected.
During his speech before the annual meeting of the International Monetary Fund and the World Bank, held in Marrakesh, the Director of Research at the International Monetary Fund, Pierre-Olivier Gourincha, said: Reduced growth expectations for the euro area From 0.9% to 0.7% in 2023 and from 1.5% to 1.2% in 2024.

“What we are seeing in the eurozone is that we are seeing how important the economic support that governments provided during the pandemic and during the energy crisis was,” Gorinchas explains. “And now, the energy crisis is over, prices are down, and the pandemic is here. “It is behind us. So, a lot of that support has been withdrawn. As a result, fiscal policy has become more neutral or even somewhat contractionary.”

in Europe, The German economy is expected to contract by 0.5% this yearThat is, two tenths higher than previous estimates

Beyond the borders of the European Union, China’s financial stability is a source of concern Real estate crisis. It is estimated that there are more than 100 million empty homes. Despite everything, China’s GDP will grow by 5% this year