For the past eighteen months, entire world is evident for worsening European economic situations, which is mainly due to sovereign debt crises. Even it has badly affected the world's developing economies specially South Africa. But it has been indicated by International Monetary Fund (IMF) that Europe as a whole may avoid a recession this year and there were reasons to be more upbeat about prospects for the region.
The main reason is that many of the European countries are growing at a faster rate which will reduce the overall impact of the European debt crises. Most of the EU countries have reduced or stabilized their increasing interest rates despite of dominating recession. It has been suggested to South Africa that economic powerhouse should be maintained supportive to monetary policy to ensure growth in the medium term.
(Courtesy- Reuters, 11th Jan. 2012)
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