## Regional Economic Outlook for Europe, October 2026

_Regional Economic Outlook_

## Source details

**Canonical URL:** [Regional Economic Outlook for Europe, October 2026](https://www.imf.org/en/publications/reo/eu/issues/2026/10/16/regional-economic-outlook-europe-october-2026)

## Other formats

- [Markdown version](/en/publications/reo/eu/issues/2026/10/16/regional-economic-outlook-europe-october-2026/index.md)
- [Structured JSON version](/en/publications/reo/eu/issues/2026/10/16/regional-economic-outlook-europe-october-2026/index.json)
- [Bundle manifest](/en/publications/reo/eu/issues/2026/10/16/regional-economic-outlook-europe-october-2026/bundle-manifest.json)

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### Growth and macroeconomic outlook
- Europe’s economy "continues to grow, if at a slow pace, despite the energy shock."
- "Growth is fragile, so macroeconomic policies will have to tread carefully."
- "Monetary policy may have to do more, and expansionary fiscal policy should be avoided, to keep pressure off inflation."
- "However, even after energy supply eventually normalizes, Europe’s structural challenges will hold back medium-term growth."
- "At the heart of problem is weak productivity."

### Policy prescriptions: reforms for innovation, scale, and resilience
- "Europe should choose higher and more robust growth through reforms for innovation, scale, and resilience."
- "Continuing the energy transition will help build resilience."
- "Advancing single market and national reforms remains the most effective way to raise productivity and lift the constraints on transformative innovation."

### Policy guidance for specific country groups
- "As export competition intensifies, CESEE countries should sustain growth through investment in skills and by reforms that improve labor market reallocation, strengthen competition, and foster innovation."
- "EU candidate countries need ambitious reforms to seize the opportunity of accession."

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## Content in this bundle

- **Choosing Growth: Reforms for Innovation, Scale, and Resilience**
  - [Choosing Growth: Reforms for Innovation, Scale, and Resilience (Markdown version)](/-/media/files/publications/reo/eur/2026/october/english/text.pdf.md){rel="alternate" type="text/markdown"}
  - [Choosing Growth: Reforms for Innovation, Scale, and Resilience (PDF)](/-/media/files/publications/reo/eur/2026/october/english/text.pdf){rel="external" type="application/pdf"}

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## References

- [World Economic Outlook](https://www.imf.org/en/publications/weo)
- [Latest Issue](https://www.imf.org/en/publications/weo/issues/2026/10/13/world-economic-outlook-october-2026)
- [Global Financial Stability Report](https://www.imf.org/en/publications/gfsr)
- [Latest Issue](https://www.imf.org/en/publications/gfsr/issues/2026/10/13/global-financial-stability-report-october-2026)
- [FM cover](https://www.imf.org/en/publications/fm)
- [Latest Issue](https://www.imf.org/en/publications/fm/issues/2026/10/05/fiscal-monitor-october-2026)
- [fd-sept-2026-pubs-hp-belt](https://www.imf.org/en/publications/fandd)
- [Regional Economic Outlook Reports, All Regions](https://www.imf.org/en/Publications/REO)

_Source: https://www.imf.org/en/publications/reo/eu/issues/2026/10/16/regional-economic-outlook-europe-october-2026_