The IMF has said that the eurozone’s recovery is not strong enough.
But Christine Lagarde, head of the International Monetary Fund, says the organisation’s regular checks on eurozone finances have led her to believe there have been some signs of progress.
She noted that although some foundations have been put in place for economic recovery, more remains to be done.
Presently, however, the region’s economic activity is still below what it was before the financial meltdown started in 2008. Growth is required in order to lessen unemployment and debt.
Some countries, including Germany and France, have returned to those levels, but not the eurozone as a whole. Inflation, it said, is “worrying low” in all the countries, with Germany and France only narrowly above the eurozone average of 0.5%.
The region is at serious risk of deflation, which can harm economies.
If inflation remains low, the IMF encouraged the European Central Bank to introduce quantitative easing as has been done in the UK and the US.
