Forex Blog: Currency Trading News & Analysis.

August 11th 2005

IMF warns of slowing growth in EU

The International Monetary Fund (IMF) recently reported on the prospects for growth in Euro-area economies. The report reinforced what most economists have argued for months: growth is slowing in the EU. The IMF now forecasts 2005 real GDP growth of 1.3% for the Euro, down from earlier forecasts of 1.9%. In comparison, it is expected the US economy will achieve 3.5% growth this year. The IMF also expects inflation in the Euro-area to decline. While it now seems that all of the pieces are in place for a cut in interest rates, the ECB voted last week to maintain current interest rate levels. It seems the Bank is simply resistant to economic logic. Xinhua News reports:

The IMF urged euro-zone governments to cut their budget deficits. It also warned that the euro-zone’s economic recovery remains vulnerable to soaring oil prices or the euro’s further appreciation.

Read More: IMF cuts economic growth forecasts for euro-zone

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Economic Indicators, Euro | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2018 Forex Blog.org. Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.