IMF Chief says Europe Looks like ‘An ideas supermarket’ for the U.S., Calls for Further Integration

• The head of the International Monetary Fund on Thursday called on Europe to achieve the full potential of its prized single market, lamenting what she described as a situation that makes the region look like “an ideas supermarket” for the U.S.
• Speaking to CNBC’s Karen Tso, IMF Managing Director Kristalina Georgieva said Europe’s economic performance was strengthening, and inflation was clearly on a downward trajectory. Georgieva said that the IMF is observing an uptick in consumption and expected interest rate cuts from the European Central Bank spelled out good news for investment in the eurozone. She said it would bolster the 20-member bloc’s economic performance.
• In May, the Washington, D.C.-based institute said in a blog post that an IMF report published in 2023 estimated that reducing remaining barriers to the single market for goods and services by 10% could raise European output by as much as 7 percentage points over the long term. “The euro area is now focusing on critical questions for the future. Among them, number one, how to lift up productivity at par with competitors, especially with the U.S.,” Georgieva said.
• The IMF chief reinforced the fund’s growth outlook for the eurozone, saying the bloc was on track to register a growth rate of 0.8% in 2024, compared with 0.4% in 2023 — and increase by 1.5% next year.

(Source: Reuters)