IMF predicts economic struggle in 2014 for Europe
The latest IMF World Economic report has forecast that Europe’s economic growth for 2014 will be a slow process. The recent report which was released last month has said that the Eurozone will see only slow growth next year where as the developing world’d financial outlook is statring to look healthier in its economic progress.
The reason for the slow rate of growth in Europe is said to be because of the massive austerity policies in the continent and the amount of countries in the eurozone including Ireland who are still struggling to pay off massive debts. China and Japan have seen signs of economic progress this year and the United States is once again in pole position when it comes to global economic progress despite the prolonged budget standoff between politicians recently that could have seen that progress halted.
The IMF has predicted that Europe should see some economic growth in 2015 where it also predicts that by that time the United States will have doubled its annual growth rate but that China will have a hard time maintaining the countries level of economic growth. The financial crisis is still playing a major part in the slowing down of economic recovery in Europe and this point was made clear by the IMF’s Chief Economist Oliver Blanchard when he was discussing the forecast for the upcoming economic year.
Mr. Blanchard said that “The recovery from the crisis continues. I think that’s a fact and an important one. But too slowly. And advanced economies are not out of the woods. Public debt, and in some cases, private debt, remain very high. And fiscal sustainability is not a given. Unemployment remains very high and will remain high for a very long time. So these challenges remain and I think they will be the major challenges we face in the years to come”