Eurozone growth is still low to reduce unemployment – LaRepública.pe

International. Internacionial Monetary Fund said Europe’s recovery is underway.

 Washington, EFE.

 

 The “cyclical recovery” in the eurozone is “up” and reduced the risk of deflation, driven by low energy prices and the weak euro, but the growth potential remains “very low” to reduce unemployment in many countries, said yesterday the International Monetary Fund (IMF).

 

 “The improvement in confidence and relief in credit conditions suggest that the recovery is likely to remain in the short term,” said the Fund in its annual review of the economy of the euro zone, known as “Article IV”.

 

 He also said that the “recent measures are supporting growth and reduced material risk of deflation”.

 

 Among these measures, the Washington-based agency said the easing of fiscal adjustment and the liquidity provided by the European Central Bank (ECB), something we have added other factors such as the falling price of energy and weaker euro.

 

 However, he warned that “the medium term” the outlook remains “fragile” because potential growth is around 1% on average, a figure “well below what is necessary to reduce unemployment to acceptable levels many countries “.

 

 In its latest projections, released in April, the IMF said the euro zone growth will be 1.5% this year and 1.6% next.

 

 GREEK CRISIS

 

 For its part, the short note also refers to the Greek crisis and the stalled talks between Greece and international creditors.

 

 For the Fund, the risks surrounding the Eurozone to Greece “can always be managed and when there is a concerted effort to accelerate and deepen integration within the monetary union to make it more resistant.”

 

 Just yesterday met in Luxembourg members of the Eurogroup to discuss the Greek crisis, but no progress was recorded or modify the positions of both parties.

 

 Meanwhile, thousands of people marched in Athens to ask the Greek government to reach an agreement with creditors on the bailout program and secure the future of Greece in the eurozone.

 

 KEY

 

 7,000 demonstrators, according to police, focused on the central square of Syntagma, Greece, from where they marched peacefully to the front courtyard of Parliament, located a few meters without the agents would prevent their passage. At the rally, which was conceived through Facebook, some participants carried flags of Greece and the European Union and banners.