Global economic growth will accelerate steadily in the next year, according to new estimates from the International Monetary Fund.

The IMF’s World Economic Outlook report is forecasting worldwide growth of 3.2% for this year, rising to over 4% in 2004. Both figures are better than 2002’s 3% increase.

These predictions are based on the assumption of a short war in Iraq with a “correspondingly limited” economic impact.

America is expected to post 2.2% expansion this year, accelerating to 3.6% in 2004. Britain is forecast to grow 2% and 2.5% respectively.

For Germany, the IMF said the outlook remained “lacklustre”. This ties in with new European Union forecasts, which predict German growth of just 0.4% this year and 2% next.

As Germany is the dominant economic force in the Eurozone, the EU has cut its forecasts for expansion in the twelve-nation area from 1.8% to 1% this year – barely above 2002’s paltry 0.9% increase. For 2004, Eurozone growth estimates have been trimmed from 2.6% to 2.3%.

Data sourced from: multiple sources; additional content by WARC staff