IMF’s growth estimates for Euro zone decrease
The International Monetary Fund (IMF) reduced its growth estimate for the 12-member Euro zone economy from 2.2% to 1.6%. A one point decrease in the predicted growth of the German economy, from 1.8% to 0.8%, played a large factor in the IMF's decision to adjust the rate for the entire zone. High oil prices, the strength of the Euro and weak demand in many of the world's leading economies lead the IMF to reduce the predictions for many other Euro zone countries, including the UK and France. Weak domestic demand is particularly to blame for the decrease in economic growth since it makes countries depended on their export markets to pick up the slack.