The International Monetary Fund (IMF) has just published its latest Regional Economic Outlook (REO) for Europe: “Navigating Stormy Waters.”
Growth inEuropehas slowed significantly, as a result of global shocks, and of the escalation of the euro area sovereign debt crisis, which has shaken confidence and curbed domestic demand.
The REO projects that growth for all ofEuropewill slow from 2.3 percent in 2011 to 1.8 percent in 2012. Downside risks to growth are significant. Most importantly, the projections are predicated on the assumption that strong action will be taken to contain the current crisis.
The report proposes a range of strong actions and policy adjustments – as already witnessed inGreece– to be implemented to restore growth inEurope.
Access the full text here.