A+ A-

IMF: Euro area expansion slowing to moderate pace

WASHINGTON, July 19 (KUNA) -- The euro area expansion, while still vigorous, is slowing to a more moderate pace, the International Monetary Fund (IMF) said Thursday.
"Growth is projected to remain above potential in 2018 and 2019, at 2.2 percent and 1.9 percent, respectively, before easing to an annual rate near 1.5 percent," said a statement from the IMF upon the conclusion of the article IV consultation on euro area policies.
In the medium term, drag will be caused by demographic changes, weak productivity growth, and crisis legacies The IMF expects inflation to take a "few years" to converge to the European Central Bank's objective of below 2 percent.
Risks on the outlook were noted within trade tensions from the US, policy inaction and political shocks at the national level, and lack of progress in Brexit negotiations. (end) ak.gta