IMF economic review of the Eurozone highlights:
- Inflation in Eurozone has picked up, decline in inflation expectations has been arrested
- Cyclical recovery underway in Eurozone
- Medium term outlook is subdued due to chronic lack of demand, weak balance sheets, slow structural reforms
- Euro currency 'moderately weaker' than level consistent with fundamentals
- Potential for growth in the Eurozone is around 1% on average, well below level needed to reduce unemployment
- Eurozone could return to low growth but remain vulnerable to shock
Nothing too surprising here. There's a bit of optimism but that's already in the market.