U.S. and Euro Area GDP Growth Gap Expected to Narrow by 2026

IMF projections indicate that U.S. annual GDP growth will decline from 2.8% in 2024 to 2.7% in 2025 and 2.1% in 2026. Meanwhile, the Euro Area is expected to experience an acceleration in growth, rising from 0.8% in 2024 to 1.0% in 2025 and 1.4% in 2026. As a result, the U.S.–Euro Area GDP growth gap is projected to shrink from 2.0 percentage points in 2024 to 1.7 points in 2025 and just 0.7 points by 2026, signaling a significant convergence in economic performance.