IMF says, the consolidation of public finances has been developed within the framework of the European economies
Consolidation of public finances, it is inevitable that European economies remained in developed but is still needed as an area to the pesticides referred to in the way of implementing the deepest post-war recession out, the International Monetary Fund (IMF) said on Wednesday.
The latest Regional Economic Outlook (REO) Europe, the IMF said that the recovery of the world economy had been boosted by the growth of exports is particularly strong in countries which export promotion capital goods scheme, however, the restoration of the presence of. operates slowly and the projected growth rates were historically low levels.
Predicted BY THE IMF, that the gross domestic product (GDP), compared with 2.3% in the European extended Y 2010 and y 2011 2,2% 4.6% decline in 2009 then. Y
Developed in Europe, where political actions helped contain the State debt problems at an early stage, Y 2010, projected growth was only 1.7% for Y in 2010 and 2011, the 1.6% Y.
"Despite recent strength, the upswing is projected to remain weak compared to the previous amounts recovered, as well as in other areas of advanced economies, with" the IMF said. "Part of the reason for the growth of these differences are generated by the impact of the crisis and improves the ECSC readaptation measures Y 2011. "
They also appear in the work of the known structural rigidities, product and service markets within the euro area's growth potential, that restricts, it said.THE IMF noted that significant risks remained and called for the undertake political decision-makers.
"The consolidation of public finances, despite the inevitable, should be implemented in a manner that minimizes the negative impact on growth and unemployment;If the growth threatens to slow down significantly more than we expect, in countries whose public finances may suspend some of the planned consolidation, "the report said.
Monetary policy must be controlled carefully to normalize your policies, on the one hand, and the need to mitigate the volatility of the markets and to ensure the sovereign bank liquidity;taija European banks in recent checkup should monitor the remove remaining weaknesses, while the balance sheets of rapid action to safeguard lending capacity.
"Policymakers is the focus of the banks ' balance sheets," said Ajai Chopra, the IMF's European Department, Director of the VT. "Vulnerable to financial institutions (IFIs) should take account of the need for restructuring, recapitalized or resolve without delay. "— Paul a. www.livetradingnews.com Ebeling, Jnr.
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