IMF warns the EU that recovery will take some time

THE International Monetary Fund (IMF) has warned that the recovery in Europe's economy will take longer than expected.

Following talks with European Union finance ministers in Brussels, the IMF says it is having to rethink its earlier bullishness about the strength of the recovery.

The massive sell-off of shares around the world, combined with a slower than expected pickup in demand and the recent rise in the euro, means growth in 2002 will be somewhat weaker than expected.