Europe Faces Soft Landing With High Rates Still Needed, IMF Says
- Rising wages present key upside risks to inflation outlook
- Region can only expect modest economic recovery next year
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Europe’s economy is unlikely to crash — even as a more-than yearlong bout of interest-rate increases tames inflation, according to the International Monetary Fund.
“The outlook for Europe is for a soft landing, with inflation declining gradually,” the Washington-based lender said Wednesday in a report, predicting growth in gross domestic product in the wider region will slow to 1.3% in 2023, improving slightly to 1.5% in 2024.