## Euro Area Policies: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Member Countries

_IMF Staff Country Reports, July 25, 2017_

## Source details

**Canonical URL:** [Euro Area Policies: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Member Countries](https://www.imf.org/en/publications/cr/issues/2017/07/25/euro-area-policies-2017-article-iv-consultation-press-release-staff-report-and-statement-by-45121)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/07/25/euro-area-policies-2017-article-iv-consultation-press-release-staff-report-and-statement-by-45121/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/07/25/euro-area-policies-2017-article-iv-consultation-press-release-staff-report-and-statement-by-45121/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/07/25/euro-area-policies-2017-article-iv-consultation-press-release-staff-report-and-statement-by-45121/bundle-manifest.json)

## Bibliographic details
- Published: July 25, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484312346.002

---

### Near-term growth outlook and drivers
- The cyclical recovery in the euro area is firming and becoming broad based.
- Factors boosting domestic demand:
  - Lower energy prices
  - Supportive policies
  - Stronger labor markets
  - A recovery in credit growth
  - Especially stronger private consumption
- Near-term growth projections:
  - Growth of 1.9 percent expected in 2017
  - Growth of 1.7 percent expected in 2018

### Inflation dynamics
- Headline inflation picked up in the first half of 2017 owing to higher energy prices.
- Core inflation has remained persistently low.

### Risks, buffers, and policy implications
- The improving near-term outlook is clouded by significant downside risks, especially in the medium and long term.
- Risks are heightened by thin policy buffers.
- Policy focus implied by the analysis:
  - Sustain supportive policies to reinforce the recovery
  - Address persistently low core inflation
  - Strengthen policy buffers to reduce medium- and long-term downside risks

---

## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17235.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17235.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2017/07/25/euro-area-policies-2017-article-iv-consultation-press-release-staff-report-and-statement-by-45121_