25 Jul 2013
IMF urges Eurozone to take more action on growth
FXstreet.com (Barcelona) - The International Monetary Fund urged the ECB on Thursday to cut rates further and extend loans to banks in order to boost growth in the Eurozone. It suggested that an economic recovery in the area would not start before 2014.
In a report on the economic condition of the Eurozone published today, the IMF projects a 0.6% GDP contraction in 2013 and a 0.9% expansion in 2014.
"For the area as a whole, the negative growth impact of consolidation could reach as much as 1-1.25 percentage point this year," the Washington-based organization stated. "Fiscal adjustment should be paced to avoid an excessive drag on growth."
The IMF called for more reforms in the banking sector and for stepping up the efforts to create a EU banking union. It also advised taking actions directed at making the labor market more flexible in order to bring down the record high unemployment in the area.
In a report on the economic condition of the Eurozone published today, the IMF projects a 0.6% GDP contraction in 2013 and a 0.9% expansion in 2014.
"For the area as a whole, the negative growth impact of consolidation could reach as much as 1-1.25 percentage point this year," the Washington-based organization stated. "Fiscal adjustment should be paced to avoid an excessive drag on growth."
The IMF called for more reforms in the banking sector and for stepping up the efforts to create a EU banking union. It also advised taking actions directed at making the labor market more flexible in order to bring down the record high unemployment in the area.
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