Europe's economy is resilient but not immune to global economic threats, the International Monetary Fund warned on Monday as it defended its gloomy view on the continent's outlook.
Earlier this month the IMF broke ranks with other forecasters by taking a downbeat stance on Europe in its global forecasts. But Michael Deppler, its European director, said on Monday this represented a "middle-of-the-road view" of the likely effects of economic shocks such as the global financial crisis, a looming US recession and the euro's appreciation to record levels.
Such factors would take a toll, Mr Deppler argued, despite Europe's relative strengths - including the strength of household and company finances, the absence of "subprime" mortgage markets, and the confidence of investors.
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