Davide Furceri | IMF Research Department
Bergljot Barkbu | Deputy Representative, IMF Europe Office in Paris and Brussels
As highlighted in the IMF's article IV consultation report for the euro area, investment across the euro area remains below its pre crisis level. Its performance has been weaker than in most previous recessions and financial crises. The IMF analysis shows that much of this weakness can be explained by output dynamics, but that since the sovereign debt crisis, a high cost of capital, financial constraints, corporate leverage, and uncertainty have further held back investment in parts of the euro area.
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