The International Monetary Fund

Europe is wrong but going well 31 July 2009 that subtraction of 2009 is still a period of economic contraction and rising unemployment for the euro area. The positive signs would begin to see in 2010 and every reason to believe that growth will appear in slow motion. The recovery of the economy there may be accelerated? The International Monetary Fund (IMF) too optimistic about prospects for the eurozone economy has shown not for 2010. The site today digital gave account that the IAEA hopes that the region experience surrounded by uncertainty and slow recovery in 2010. The commitment of the Agency is to only reach a growth of 0.3%.

The fears raised by the IMF left the feeling that the only fact of the economy to grow is good news and should comply. But a 0.3% is a number too modest to look forward to the great mass of unemployed today has the eurozone, with the possibility of getting employment. I think mainly in the more 3.1 million young people under 25 unemployed (the population segment most punished by the crisis), that has the region. The economy with 0.3% growth poor wouldn’t in this scenario too much capacity to generate employment, not even necessary to absorb to anyone entering the labour market. The scenario of what is left of 2009 isn’t nor overly optimistic as they present him with an IMF anticipating a contraction of 4.8% of GDP of the region (although the European Commission, is not shown as pessimistic and anticipates that it expects a contraction of 4%). For companies, persists in addition the risk of deflation affecting their profitability margins. During the month of June, according to data from Eurostat, the eurozone exhibited his first interannual price deflation (which was 0.1%), since the euro was introduced. The logic of the entrepreneur that sees an economy that shrinks and their margins shrink addition product of the low price, tends to consider that this is not a year to invest, or if there is the possibility of doing so, better opt for short-term alternatives.

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