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IMF Warns Euro-Area Recovery May Slow, Stimulus Still Needed

  • Fund says fiscal, ECB stimulus has helped cushion blow
  • Virus resurgence means October growth forecast may be revised

The euro area is in danger of seeing a slower economic recovery in 2021 than previously expected, and may need more stimulus as a resurgent coronavirus sweeps through the continent, the International Monetary Fund said.

Risks will remain on the downside into the new year and the timing of a rebound will depend on how quickly and effectively a vaccine is rolled out, the fund warned. It said unprecedented policy responses at national and European Union levels have helped cushion the impact of the crisis.