The growth outlook for euro area for this year was maintained at 1.5 percent and the projection for next year was raised slightly to 1.7 percent from 1.6 percent.
Among the big four in the single currency bloc, Germany and France had their growth forecasts for both years maintained, while Italy and Spain enjoyed an upgrade to projections.
“The economic recovery in the euro area seems broadly on track, with a generally robust recovery in domestic demand and inflation beginning to increase,” the report said.
“Growth projections have been revised upward for many euro area economies, but in Greece, unfolding developments are likely to take a much heavier toll on activity relative to earlier expectations.”
The growth forecast for advanced economies for this year was lowered to 2.1 percent from 2.4 percent. However, the projection for next year was kept at 2.4 percent.
U.K. growth forecast for this year was cut to 2.4 percent from 2.7 percent and the projection for next year was lowered to 2.2 percent from 2.3 percent.
Japan and Canada also had their growth projections for this year lowered to 0.8 percent and 1.5 percent, respectively. For next year, Japan’s growth outlook of 1.2 percent was maintained, while Canada’s forecast was raised to 2.1 percent from 2.2 percent.
Among emerging economies, China and India also had their projections for both years maintained. The Chinese economy was forecast to grow 6.8 percent this year and 6.3 percent next year. The Indian economy was projected to expand 7.5 percent this year as well as next.
Meanwhile, the Russian economy was forecast to contract less this year and grow next year. The forecast for this year was raised by 0.4 percentage points to -3.4 percent. The projection for next year was lifted by 1.3 percentage points to 0.2 percent.
Brazil’s growth projection for this year was cut to -1.5 percent and the forecast for next year was lowered to 0.7 percent. South Africa’s growth outlook for this year and next was left unchanged at 2 percent and 2.1 percent, respectively.
