WATERLOO – The International Monetary Fund cautioned that “one of the most obvious dangers in the short term is the energy supply instability, which, together with a harsh winter, can lead to a lack of gas, legalisation, and further economic troubles,” painting a bleak picture of the economic prospects in Europe.
“The IMF expressed pessimism in its regional forecast, which was released on Sunday, about the state of the European economies this year and in the coming year, noting that the risk of experiencing energy shortages may make this situation worse and that growth and inflation are still declining at very high rates. He stated: “Horizons in Europe have drastically shrunk.
“At the World Bank’s annual meetings in Washington on October 11, the IMF gave a presentation on the world economy before publishing regional reports.
In this regional report, the fund claimed that “Europe was on its way out of the epidemic at the end of 2021 with a mixture of internationally appropriate policies” and that “the high inflation was on its way to decline,” but “All of these horizons were altered in some way by the Russian invasion of Ukraine and its consequences.
” It is expected that growth in the European continent, with the exception of Turkey and the countries that are witnessing a dispute, will reach 3. 2% in 2022 and 0. 6% in 2023, that is, respectively, at 0. 7 and 1. 1 points than expected during previous expectations published in July.
Inflation is predicted to slow in 2023, but it will still be extremely high, with the IMF projecting that it will hit 6.2% in advanced European economies and 11.8% in emerging European economies.
The IMF said that “social tensions can intensify in response to the crisis of the cost of living,” which leads governments to “a more expansionist budget policy that central banks can force to tighten their monetary policy more. ”
The International Monetary Fund stated that “European decision-makers have challenging political alternatives in the face of a mixture of weak growth and excessive enlargement that can intensify.
” He warned that “the artistic recession- at least two consecutive chapters of negative growth of the internal product- expected in some parts of Europe can turn into a deeper stagnation throughout the continent. ”
The International Monetary Fund maintained its prediction for global growth in 2022 at 3.2% and lowered it to 2.7% for 2023.
On the other hand, the World Health Organization stressed on Monday that precautions should not be relaxed as winter approaches and that people should remain vigilant while the number of Kofid-19 injuries and influenza cases in Europe increase, using the example of polio to support the value of pollination.
The World Health Organization’s regional director for Europe, Hans Kloga, stated at a press conference online that “this is not the time of indolence.”
The European region, which encompasses 53 nations, including those in Central Asia, was once more the epicentre of the pandemic at the start of the fall, accounting for 60% of all new Kofid injuries worldwide.
IMF: Europe was on the verge of eradicating the pandemic, however!
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