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Euro Area Policies

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Euro Area Policies

IMF,

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Negative medium-term externalities threaten a promising euro-zone recovery.

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Recommendation

While macroeconomic conditions in the near term augur a recovery in the euro zone, the medium-term outlook is less upbeat, according to this authoritative and reasonably accessible report from the International Monetary Fund. The aftermath of the recession and the ongoing machinations of the Greek crisis threaten more robust growth and employment across the region. Policy makers will need to continue their concerted efforts to put the economy on a sustainable path. getAbstract recommends this influential recap to executives doing business in the euro zone.

Summary

According to numerous indicators, the euro zone is experiencing a solid economic upturn in the short term, with regional GDP growth set to reach 1.7% in 2016, up from 1.5% in 2015. The European Central Bank’s quantitative easing has been critical to that recovery, along with a cheaper euro and low oil prices. While upside and downside risks may appear to be more evenly distributed than in the recent past, optimism could yet turn to pessimism in the medium term. Dark clouds loom in the form of latent economic weakness, low inflation, account imbalances among members, slowing emerging markets...

About the Author

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


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