IMF warns of economic perils for Europe amid aging population, low productivity

The International Monetary Fund (IMF) has issued a stark warning about the long-term challenges facing Europe, pinpointing its aging population, low labor productivity, and energy sector vulnerabilities as major threats to the region's economic development.

The IMF expressed concern over the demographic decline in Europe, noting that the continent’s increasingly older population could dampen future growth prospects, Caliber.Az reports via Russian media. 

This trend is compounded by a widening productivity gap between Europe and other, more dynamic global economies, leaving the region at risk of stagnation. 

The IMF also highlighted climate change as an urgent issue that requires immediate attention. The need for coordinated energy policies and the integration of energy infrastructure across Europe was emphasized as critical to addressing the continent’s current energy challenges and securing sustainable growth.

In its official statement, the IMF stressed that “Europe must reinvigorate itself if it hopes to maintain its prosperity.” It underscored the existential nature of these challenges, warning that failure to act could undermine Europe’s long-term stability.

The IMF is a global organisation that works to achieve sustainable growth and prosperity for all of its 191 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.

By Naila Huseynova