IMF says crisis is moment of truth for Europe; Sweden braces for fallout from Baltic banking crisis
Jun 11th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The IMF says the economic downturn sparked by the financial crisis that began in mid-2007 has become a global, synchronised recession. Tighter financial conditions, falling wealth, and greater uncertainty have triggered a sharp decline in all types of demand. In parallel with the rest of the world, Europe has entered a deep recession, and there is a risk that the recovery will be delayed, especially if policymakers do not address problems in the financial sector head on. In Eastern Europe, the small Baltic republics are enduring harsh recessions and Sweden's banks are bracing for a fallout from the regional contractions.