IMF highlights surprising resilience of eurozone economies

According to the IMF, the eurozone economies have shown remarkable resilience in the face of multiple disruptions.

Petya Koeva-Brooks, deputy director of the IMF’s Research Department, told Euronews that the global economy remains on track for a global recovery despite downward adjustments in forecasts.

“We were surprised by the resilience that the eurozone economy has shown in adjusting to the shock,” she said. “This is partly due to non-Russian sources of gas and liquefied natural gas, and we are seeing a reorientation of some supplies from Asia.

“And at the same time, we also saw another part of the adaptation to energy switching, which ultimately contributed to the growth rate of the eurozone economy last year, of the order of 3.5%, which is a pretty good growth rate, again, given the size shock.

“Our baseline forecast remains for a soft landing for the global economy and advanced economies. This is our baseline. We say that the risks associated with it have increased, and in particular the risks of reduction. If we look at the German economy, we predict that growth this year will be very close to zero minus 0.1%, which is a slight decrease from what it was in January, due to tighter financial conditions and tighter monetary policy, which is necessary to fight inflation.

“At the same time, we expect growth to pick up in Germany, the euro area and globally in 2024.”