The global economy is recovering only very slowly due to the war in Ukraine and high inflation.
(Photo: dpa)
Washington The Europe Director of the International Monetary Fund (IMF), Alfred Kammer, is assuming new economic risks for the continent. “We remain in a challenging environment,” he told the Handelsblatt.
Although energy prices have recently fallen, they will not return to pre-pandemic levels in the medium term. This factor alone would slow down the gross domestic product (GDP) in Europe “by around one and a half percentage points” in the foreseeable future, according to Kammer.
According to the IMF, the fight against inflation is proving to be much tougher than expected a few months ago, and this applies above all to Europe. Kammer sees “stubborn and persistent inflation” as the “number one problem” for the continent. Specifically, headline inflation will “fall significantly” this year as a result of falling energy prices. “So there is light at the end of the tunnel,” says Kammer.
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