Developed economies' lacklustre growth of just 1.3% in 2012, and an expected decline of 0.2% in the eurozone’s GDP in 2013, have led the International Monetary Fund (IMF) to trim its global growth forecast for 2013 by 0.1 percentage points from its October 2012 prediction. But the IMF has maintained that the global economic recovery will gather momentum this year, with global economic growth of 4.1%, up from 3.5% in 2012.

Emerging economies are expected to bolster global growth figures considerably, while struggling developed economies will continue to weigh in on global growth. In Europe, Spain and Italy are expected to enter a second year of recession, but Germany and France will grow by 0.6% and 0.3%, respectively. Although the UK will fare better, the IMF cut its forecast by 0.1% to 1% growth in 2013. Growth in the US is expected to reach 2%.


“The euro area continues to pose large downside risks to the global outlook,” the IMF said in its Global Outlook Report. “In particular, risks of prolonged stagnation in the euro area as a whole will rise if the momentum for reform is not maintained.”