Regional Economic Outlook

Soft Landing in Crosswinds for a Lasting Recovery

April 2024

IMF's Regional Economic Outlook for Europe:  Turning the Recovery into Enduring Growth

Tuesday, May 14, 2024 | 8:30 AM ET


  • Alfred Kammer, Director, European Department, IMF
  • Maria Demertzis, Senior Fellow, Bruegel
  • Christiane Nickel, Deputy Director General Of DG Economics, European Central Bank
  • Moderated By Maria Tadeo, Europe Correspondent

Soft Landing in Crosswinds for a Lasting Recovery

A soft landing for Europe’s economies is within reach. Securing the baseline of growth with price stability will require careful monetary policy calibration. Faster fiscal consolidation would ensure buffers are adequate to tackle future shocks, while structural fiscal reforms would help address mounting long-term expenditure pressures. Beyond the near-term recovery, raising potential growth prospects calls for efforts at both the domestic and European levels. Measures should aim to raise labor force participation, prepare the workforce for looming structural shifts, set an enabling environment for private investment, and promote innovation on a level European playing field—especially when it comes to the green transition, including through a strong commitment to carbon pricing. Greater European integration would amplify the effect of these reforms. Formulating an ambitious set of growth-enhancing reforms should be a key priority of a new EU commission.

Projections Table

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