IMF sees eurozone growth above 2.0 pct in 2007

0 Comments | AFP, September, 2005

BRUSSELS (AFP) — The eurozone's potential economic growth rate should rise above 2.0 percent in the next few years, although high oil prices could delay the bloc's recovery, a top IMF official revealed.

Although eurozone growth has been "disappointing" compared with the United States and the rest of the world, the IMF is relatively optimistic about the area's prospects, said its European department director, Michael Deppler.

"There is a recovery on the horizon," he said Friday, adding that the timing is difficult to predict.

"Oil may delay that turn," he cautioned.

Runaway oil prices are increasingly taking their toll on the eurozone and global economy, pushing up inflation prices and denting consumer and business confidence.

"It is clear we...