18 Jul 2014
IMF's Lagarde: Markets too upbeat on on Eurozone recovery
FXStreet (Łódź) - IMF head Christine Lagarde, who participated in a debate on the future of the Eurozone at a conference in Paris, indicated excessively elevated unemployment as the mayor problem for the area.
She suggested that the condition could persist for some more time, especially among youth, which is catastrophic. She also said that the stubbornly low inflation could derail the economic recovery.
Moreover, she urged the ECB to keep propping up the Eurozone economy until a clear rebound in demand is evident, while EU Member States should continue implementing structural reforms to boost GDP.
“The good news is that the European economy is recovering from the crisis," she finally said. "Confidence is improving and financial markets are upbeat."
"Perhaps too upbeat,” she added however.
She suggested that the condition could persist for some more time, especially among youth, which is catastrophic. She also said that the stubbornly low inflation could derail the economic recovery.
Moreover, she urged the ECB to keep propping up the Eurozone economy until a clear rebound in demand is evident, while EU Member States should continue implementing structural reforms to boost GDP.
“The good news is that the European economy is recovering from the crisis," she finally said. "Confidence is improving and financial markets are upbeat."
"Perhaps too upbeat,” she added however.