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Europe
Report

Europe

Domestic Expansion Running into External Turbulence

IMF, 2018

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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

The pace of growth in Europe’s advanced economies decelerated in 2018, a trend expected to continue into 2019, according to this detailed IMF analysis intended for economists and policy experts. A more hostile trade environment, the prospect of a failed Brexit deal, costlier energy, more volatile emerging markets and slowing global demand are some of the headwinds the region is battling. Against this backdrop of lower but still solid economic activity, the IMF advises that the time is right for officials to take measures to shore up their economic defenses.

Take-Aways

  • Expanding economic activity in Europe, mainly in the developed countries, slowed its pace in the first six months of 2018.
  • External factors – the impacts of US-imposed tariffs, rising fuel and commodity prices, and slowing demand for European exports – are acting as a drag on forward momentum.
  • The outlook for still positive though slowing domestic growth gives European economies room to enact measures to help them weather the next recession.

About the Author

The International Monetary Fund advises member nations on policy issues and works to promote economic stability and well-being.