IMF, Europe grows little but better than expected given the external shocks

“The European economy continues to grow, albeit at a slow pace, despite adverse shocks accumulating.”

The IMF writes this in the 'Regional Economic Outlook' for Europe. The summer heat wave and drought have added "to the negative effects of energy price increases, and external duties remain high".

According to the document, "economic activity continued doing better than expected", however "growth is fragile because major geopolitical and geoeconomic risks persist, pressures for defense and other public spending needs are increasing, and sovereign yields are rising". The IMF writes that "the prospect is of mediocre growth that will continue in the medium term" with a forecast for the euro area of ​​1.1% this year, then 1.2 and 1.3% in the next two years.