The IMF released it Regional Economic Outlook for Europe on May 12th. Some of the key takeaways from this release are:

Source: IMF

• Europe’s current deep recession there is a risk that it could worsen further
• Western Europe is projected to see their economies shrink by 4.0% in 2009
• Output in Emerging European countries would fall by 4.9% in 2009
• Modest decline for Western Europe and modest recovery for Emerging Europe in 2010
• Demand for goods fell sharply in 4Q,2008 leading to 26% annual rate decline in trade
• Domestic real estate crash has severely affected the Baltic economies, Ireland, Spain, and the United Kingdom
• Large public debt and current account deficits have been the cause of collapse for some countries such as Hungary and Greece
• IMF suggests more strong actions in the financial sector
• Better policy co-ordination among countries and more support for emerging eastern Europe is needed