IMF cautions euro zone recovery may slow, stimulus still needed

摘要

The euro zone is in danger of seeing a slower economic recovery in 2021 than previously expected, and may need more stimulus as a resurgent coronavirus sweeps through the continent, the International Monetary Fund said. Risks will remain on the downside into the new year and the timing of a rebound will depend on how quickly and effectively a vaccine is rolled out, the fund warned. It said unprecedented policy responses at national and European Union levels have helped cushion the impact of the crisis. "Unless pandemic dynamics change significantly in the coming months, economic activity is set to recover more gradually than forecast," the IMF said in a report after talks with euro-zone members on their common policies. Further fiscal support will be needed and governments should "explore options to enhance the current fiscal rules." For now, the IMF maintained its estimates of an 8.3% slump in the 19-member euro area this year and a 5.2% economic rebound in 2021. A slower recovery would be more likely to produce long-term "scarring" that could weigh on the bloc in the future, it warned, adding that tensions between the UK and EU over Brexit have increased uncertainly. Italy and Austria have imposed new lockdowns to contain the virus spread, while the UK is facing a surge of infections and a new variant of the coronavirus that led several nations to tighten restrictions on travel to and from the country. Such events are putting a damper on hopes of a quick recovery.