IMF expects EU economy to contract by 0.2% this year

The IMF forecasts growth to reach 3.5% this year and a more robust 4.1% next year.

However, conditions in the eurozone will remain challenging with the economy expected to contract by 0.2% before posting a modest growth rate of 1% next year, according to the Fund’s latest World Economic Outlook.

Effective policy responses have reduced the acute risks facing the eurozone, Japan and the US.