IMF warns of euro area downside risks

Tokyo

ECONOMIC recovery in the euro area has strengthened but the future of the bloc is strewn with risks, not least being Britain's impending departure from the European Union, the refugee surge in Europe and security concerns, the International Monetary Fund warned on Friday.

"Euro-area GDP growth is expected to decelerate from 1.6 per cent this year to 1.4 per cent in 2017, mainly due to the negative impact of the UK referendum outcome," the IMF said in its latest Article 1V consultation report on the 19 of the 28 EU members that make up the euro area.