IMF: European Economies To Contract Sharply This Year

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

IMF Economy Projections

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

Leave a Reply

Your email address will not be published. Required fields are marked *