The International Monetary Fund (IMF) cut its 2022 GDP growth forecast for the eurozone by 0.4 percentage points to 3.9%, according to its updated World Economic Outlook (WEO) out on Tuesday.
“In the euro area, prolonged supply constraints and COVID disruptions produced a less severe revision of 0.4 percentage point,” the WEO said.
A 0.8 percentage point downgrade to 3.8% for Germany’s 2022 GDP growth, caused by supply chain shocks, was the major reason for such shrinkage, the report read. The IMF also revised 2022 forecasts down for Spain to 5.8% (-0.6 percentage points), Italy to 3.8%, and France to 3.5% (-0.4 percentage points each). In 2023, the eurozone economy will add 2.5% of GDP, half a percentage point more than expected in October, the report noted.