Europe Not Using Good Economic Growth to Reform, IMF Says

Published in

European economic growth is strong, mainly thanks to domestic demand, but governments are not taking sufficient advantage of the good times to reduce their debt and implement reforms, the International Monetary Fund said in a forecast on Tuesday. The IMF forecast that growth in advanced European economies, mainly the euro zone, would slow to 2.3 percent this year from 2.4 percent in 2017 and then decelerate to 2.0 percent in 2019, the International New York Times reported on a Reuters story. The European Commission forecasts the same growth slow-down. "Amid the good times, however, fiscal adjustment and structural reform efforts are flagging," the IMF said. "With economic prospects continuing to improve in the short term but medium-term prospects less bright, policymakers should seize the moment to rebuild room for fiscal manoeuvre and push forward with reforms to boost growth potential," the IMF said. Read more. (Subscription required.)