IMF: Euro boosts Ireland

The weak euro is boosting debtor countries like Ireland, but will likely make worse “imbalances” across the eurozone and will fail to increase domestic demand in creditor countries, the IMF said in a major report yesterday.

The report on the economy of the single currency bloc also highlighted the potential for the disposals of non-performing loans by banks to “unlock” new lending across the eurozone, and said Portugal, Italy, Spain and Ireland were best placed to benefit from such a policy.

In its so-called Article IV on the eurozone, the IMF said that the economy of the currency bloc is improving, but only at a modest pace, and that unemployment in many countries would stay at elevated levels.