Economics

IMF Says Euro Area Strengthening, Warns About High-Debt Nations

  • Euro-area recovery is becoming more ‘broad-based’: IMF
  • Core inflation in region is ‘undesirably low,’ fund says

The European Central Bank headquarters in Frankfurt, Germany.

Photographer: Martin Leissl/Bloomberg
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The International Monetary Fund said the euro area’s economic recovery “has gained momentum” while it warned that some of the region’s high-debt countries may face difficulties when monetary policy accommodation is reduced.

“The euro area recovery is strengthening and becoming more broad-based,” the IMF said in a statement Thursday following its regular consultations with the 19-nation region. “There should be a renewed commitment to completing the banking union, advancing the capital markets union and creating a common fiscal capacity.”