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.