IMF forecasts modest growth for Italy, cuts estimates for France and Germany
The International Monetary Fund forecast modest growth for Italy while cutting its estimates for France and Germany. The IMF also lifted its 2026 global inflation forecast to 4.7%, citing rising energy and commodity prices and risks from Middle East tensions.
In its updated assessment, the International Monetary Fund forecast modest growth for Italy while revising down its estimates for France and Germany, Europe's two largest economies. The picture points to weak economic momentum across the region.
The fund raised its global inflation forecast for 2026 to 4.7%. The IMF cited rising energy and commodity prices and risks stemming from tensions in the Middle East as the reasons for the revision.
The combination of weak growth and rising inflation presents a difficult balance for the European Central Bank and governments. Investors are watching how monetary policy and fiscal measures will respond to the outlook.
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