Economic Buzz: IMF highlights weak European economic growth

The world economy and Europe with it is hit once more by a shock due to the events unfolding in the Middle East, Kristalina Georgieva, IMF Managing Director, stated at the ?One Europe, One Market Summit?. She noted that before Hormuz closed, Europe?s growth outlook was improving but now growth is slowing down and inflation is up. This pressure on growth comes fiscal weakness. National budgets are under ever-increasing strain from long-term spending pressures, including the rising pension and healthcare costs of an aging population, the costs of the energy transition, and defense needs. Relative to now, the increase in annual public spending in these areas could reach 5 percent of GDP by 2040. She highlighted the One Europe; One Market program and noted that it offers a comprehensive blueprint for progress.

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