Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

IMF’s Blanchard Says Peripheral Europe 10 Years From Health

Jan. 27 (Bloomberg) -- Some countries on the periphery of Europe could take a decade to return to a normal growth trajectory after they face a “very tough” period of fixing their budgets, said IMF chief economist Olivier Blanchard.

“It is very clear that the adjustment process that these countries will have to go through, both on the macro and the fiscal side, is not going to be over in three years or in five years, it will probably take 10 years until these countries actually get back to health,” Blanchard said today in a speech at an economics symposium at the Massachusetts Institute of Technology in Cambridge, Massachusetts.

Blanchard was discussing the outlook for “peripheral Europe” a set of countries he identified as “surely Ireland and Greece, and Portugal and Spain being not very far from it.”

The steps needed to fix budgets will not be easy, he said. “The initial period is going to be a very tough one,” Blanchard said. “It’s going to be one of fiscal consolidation in an adverse environment, probably with negative growth, which we’re seeing.”

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.