Regional Economic Outlook, October 2011, Europe: Navigating Stormy Waters

October 5, 2011

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Format: Chicago

Regional Economic Outlook, October 2011, Europe: Navigating Stormy Waters, (USA: International Monetary Fund, 2011) accessed December 12, 2024

Summary

Following a strong showing in early 2011, the economies across Europe now face the prospect of a pronounced slowdown, as global growth has softened, risk aversion has risen, and strains in Europe's sovereign debt and financial markets have deepened, according to this issue of the Regional Economic Outlook for Europe. Downside risks are significant, and a further deepening of the euro area crisis would affect not only advanced Europe, but also emerging Europe, given its tight economic and financial ties. The policy stance in advanced Europe will need to be adapted to reflect the weakening and tense outlook, financial systems strengthened further, and a consistent, cohesive and cooperative approach to monetary union adopted by all euro area stakeholders. The cross-country experience in the past decade in Europe shows the difference that good policies can make in boosting growth, with some European countries having grown rapidly while others have stagnated. Escaping low-growth traps, through broad-based reforms that address macroeconomic imbalances and country-specific structural rigidities, is possible.

Subject: Banking, Expenditure, Exports, Financial crises, Fiscal consolidation, Fiscal policy, Imports, International trade, Labor, Labor markets

Keywords: Asia and Pacific, Baltics, CESEE banking systems, CESEE economy, CESEE operation, Country, Country index, Europe, Expenditure growth, Expenditure rule, Exports, Fiscal consolidation, Global, IMF staff calculation, Imports, Labor markets, Output spillover, Panel VAR model, REO, Western Europe

Publication Details

Pages:

126
Volume:

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DOI:

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Issue:

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Series:

Europe
Stock No:

REOEUREA2011002
ISBN:

9781616351281
ISSN:

2071-4165

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