IMF - Europe 18/10/2019 takeaways:
- Slowdown across advanced Europe from 1,4% to 1.3% specially in Germany, Italy and UK, due to trade tensions and Brexit. 2020 modest recovery of the grwoth rate to 1,5%;
- Demand is strong and it's underpinned by a strong labor market;
- Fiscal policy should be used for the countries with potential expansionary policy slack (Germany / Netherlands) however there are countries that still should be focusing on fiscal consolidation (southern countries);
- Monetary policy should be accommodative as is being implemented by ECB to avoid a recession, however such policy is depletive of potential future monetary policies;
- Emerging Europe is also reducing its growth prospects, still expected to grow at 3,7% and on 2020 at 3,1%;
- Long-term problems remain - productivity and demographics in advanced Europe should be addressed and Emerging Europe should improve macro-economic policies to tackle structural problems and promote institutions reforms & its governance k«
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