By Shekhar Aiyar, John Bluedorn, and Romain Duval
Growth in the euro area rebounded earlier this year, but it remains fragile, while risks have increased. Now is a good time for euro area economies to strengthen their ability to weather any future economic difficulties.
A new IMF staff paper looks at the resilience of euro area countries and finds that they have had more frequent and severe recessions than other advanced economies over the past 20 years. An even greater cause for concern is that differences between member countries growth and unemployment rates after euro area-wide downturns have widened. This widening was most stark following the 2008 global financial crisis.
While euro area countries have made substantial progres…
Read the full article at: https://blogs.imf.org/2019/06/17/making-the-euro-area-more-resilient-before-the-next-recession-hits/