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Overview of the Provincial Revenue and Expenditure (OPRE %u2013 2025/26)Economic IndicatorsGlobal EconomyFrom its January 2025 Update, the International Monetary Fund (IMF) anticipates global economic growth for 2024 to come out at 3.2 per cent, with projections of 3.3 per cent for each of the next two years, 2025 and 2026. The near-term global growth projections remain below the 3.7 per cent average attained in the previous decade prior the onset of Covid-19. The seemingly moderate and stable growth outlook masks over widening growth divergences between countries and their consequential impact on global trade. Table 1.8 provides an overview of the growth outlook across selected advanced and developing economies including those that have significant trade links with South Africa, i.e. the European Union, the United States, BRICS, and Sub-Saharan region. 18Advanced Economies: Growth continues to be slow in the Euro Area, mostly in Germany on account of slowing manufacturing output and subdued exporting activity, whilst the Japanese economy has experienced temporal disruptions in 2024. For the medium-term growth in the Euro Area is expected to remain subdued at 1 per cent per annum reflecting weaker manufacturing output and lingering policy uncertainties on energy. For 2026 EU growth is expected to recover slightly to 1.4 as financial conditions improve and policy uncertainty diminishes. For the US growth remained robust in 2024 supported by strong consumption demand, and less restrictive monetary and financial conditions. For the medium-term the robust US economic growth outlook is expected to continue in 2025 and 2026 characterised by a strengthening labour market and accelerating private investments in response to anticipated market deregulations and tax cuts. Table 1.8: Economic growth in selected countries Region/country 2024 2025 2026 2027 Percentage Actual Estimate ForecastWorld 3.3 2.8 3.0 3.2 Advanced economies 1.8 1.4 1.5 1.7 2.8 1.8 1.7 2.0 0.9 0.8 1.2 1.3 United StatesEuro areaUnited Kingdom 1.1 1.1 1.4 1.5 4.3 3.7 3.9 4.2 5.0 4.0 4.0 4.2 0.6 1.4 1.6 1.8 Emerging and developing countriesChinaSouth Africa1World trade volumes 3.8 1.7 2.5 3.0 1. National Treasury forecastSource: IMF World Economic Outlook, April 2025