IMF Lowers Economic Growth Projection for Europe (DPA)
Last Modified: 09:25 AM, Thu Nov 08, 2018

The IMF lowered its forecast for economic growth in Europe for 2018 and 2019 but said the region was still growing above its potential. Domestic demand - buoyed by stronger employment and wages - remained a strong factor in driving growth among European economies, the Fund said in its Regional Economic Outlook. It projected growth of 2.3% in 2018 for the region, lower than last year's 2.8%. Growth for 2019 was forecast to drop to 1.9%. The IMF said that short-term risks were mainly linked to "escalating trade tensions." In the medium-term, growth could slow due to delays in implementing fiscal adjustment and structural reforms. Britain's departure from the EU without an agreement could result in high trade and non-trade barriers that would also weigh on growth, it cautioned.

IMF lowers economic growth projection for Europe
8 November 2018
Copenhagen (dpa) - The International Monetary Fund has lowered its forecast for economic growth in Europe for 2018 and 2019 but said the region was still growing above its potential.
Domestic demand - buoyed by stronger employment and wages - remained a strong factor in driving growth among European economies, the IMF said in a report released Thursday.
Europe's economies, however, have also faced a weakening of global demand, higher oil prices and trade tensions.
The IMF projected growth of 2.3 per cent in 2018 for the region, lower than last year's 2.8 per cent. Growth for 2019 was forecast to drop to 1.9 per cent.
In its May economic outlook, the IMF had anticipated growth to hit 2.6 per cent in 2018 and 2.3 per cent in 2019.
The IMF said that short-term risks were mainly linked to "escalating trade tensions." In the medium-term, growth could slow due to delays in implementing fiscal adjustment and structural reforms.
Britain's departure from the European Union without an agreement could result in high trade and non-trade barriers that would also weigh on growth, the IMF cautioned. Non-trade barriers include import licensing and rules of origin.
IMF's Thomsen Says Brexit to Have Economic Cost for U.K. and EU
2018-11-08 

By Fergal O'Brien

(Bloomberg) -- IMF Managing Director Poul Thomsen says cost
to U.K. will be larger.
* An early Brexit agreement and a transition deal would help
reduce disruption and uncertainty, Thomsen says in interview
with Bloomberg TV

* Euro-area growth is slowing, but still above potential
** ECB is right to be "firmly focused" on inflation, core still
very low
*** "The ECB is doing exactly the right thing. It's starting the
normalization, but monetary policy will remain accommodative for
the foreseeable future"


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