Global credit rating agency Morningstar DBRS has upgraded its estimation for Greek economic growth for 2024 to 1.6% in its analysis.

Despite the favorable forecast for the current fiscal year, the Canada-based credit rating agency lowered its GDP prediction to 2.2% for 2025, according to its new global economic forecasts, while it also expects a faster decline in the unemployment rate to 10.1% this year and even further to 9.2% in 2025.

DBRS’s analysis notes that growth forecasts for almost all major economies have improved over the past three months, with the median growth forecast for the U.S. in 2024 upgraded to 2.4%. The Canadian economy faces more challenges, but forecasts have also slightly improved to 1%.

Major European economies show weak growth prospects, the analysis posits, but the average forecasts for the UK, Spain, Italy, France, and Germany have significantly improved since March. Forecasts for China have also improved by 0.4 percentage points to 5%, while growth forecasts for Japan have decreased by 0.3 percentage points to 0.4%.

Ongoing geopolitical tensions, electoral uncertainty in key economies, and prolonged risks from commercial real estate could further deteriorate the outlook as we enter the second half of the year, DBRS reports.