BRUSSELS, Oct. 21 (UPI) -- Economic growth in Europe is expected to fall sharply before starting to recover in late 2009, the International Monetary Fund said Tuesday.
In Europe, a mild recession is expected soon. Real gross domestic product growth is projected to drop to 1.3 percent in 2008 and 0.2 percent in 2009, down from 2.8 percent in 2007.
"Growth is weakening in the emerging economies as well, the IMF said. "However, the decisive measures taken by a number of European governments should help contain the crisis and output growth is expected to start recovering in the second half of 2009."
The IMF said restoring financial stability in Europe requires a "comprehensive and coherent global approach."
"Times are no doubt extraordinarily uncertain, but we are now seeing the concerted response that demonstrates policymakers' awareness that the global crisis needs a global response," said Alessandro Leipold, acting director of the IMF's European Department.
"For Europe, this crisis provides a catalyst for improved cross-border coordination, and we encourage European leaders to follow up with bold steps on their recent commitment to concerted and coordinated action, to resolve this crisis swiftly."
