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IMF Revises GDP Forecasts for Spain, India, Russia; Ireland’s Growth Lags Behind

The International Monetary Fund (IMF) has revised its GDP growth forecasts for several countries, including Spain, India, and Russia, while predicting a slower pace for Ireland. The changes in predictions come amidst a global cost of living crisis, high interest rates, and rising inflation.

Spain’s GDP growth is expected to slow to 1.7% in 2024. However, the country is predicted to outpace other developed nations with a 2.4% growth this year. This progress is partly attributed to a boost in tourism, despite an anticipated increase in inflation by 2024. On Tuesday, the IMF also pointed out that Ireland’s GDP growth of 2% in 2021 will lag behind the US (2.1%) and Eurozone nations including Malta (3.8%) and Spain (2.5%). This represents a significant slowdown from over 9% GDP growth in 2020 for Ireland.

India, an emerging economy, is predicted to achieve a 6.3% GDP growth in 2023, outpacing Ireland’s economy. Despite the war in Ukraine and related sanctions, Russia also shows resilience with its GDP forecasted to rise from 0.7% to 2.2%.

Ireland is expected to see a modest recovery in 2022 with an anticipated GDP increase of 3.3%. Irish prices are set to rise by 5.2% this year, while unemployment rates are projected to drop from 4.5% in 2020 to 4.1% in 2021 and hold steady at 4.2% in 2022.

Despite leading Eurozone growth during the pandemic, Ireland is projected to rank seventh within the bloc this year, with five members, including Germany (-0.5%), facing recession. Chinese growth predictions have been revised down slightly to 5% for this year, with warnings of potential risks from further slips in Chinese real estate prices. The UK economy is expected to see sluggish growth of 0.5% this year.

IMF chief economist Pierre-Olivier Gourinchas highlighted the global economy’s resilience despite the slowdown in growth from 3.5% last year to 3% this year. He noted that only India and China are expected to outpace Ireland’s economy. Global inflation is projected to slow from 9.2% last year to 5.9% this year.

Source: Investing.com