IMF says eurozone must act firmly on crisis

The IMF predicts the stronger eurozone economies will give the area an average growth rate of 2% this year

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The eurozone must take decisive action to stop the debt crisis spreading outside Europe, the International Monetary Fund (IMF) has said.

The IMF said Greece, the Irish Republic and Portugal needed to stick to their austerity plans.
The Washington-based organisation also said the whole euro area should make a more consistent effort to restore confidence.
It recommended a "significant strengthening" of economic governance.
The IMF says most eurozone countries are enjoying a solid economic recovery - working through pre-crisis imbalances, such as high debt and financial market tensions - but it warns these are pulling away from the weak ones.
It says these tensions pose a key risk to the outlook "with possible large regional and global implications".
One area of concern it points to is the weaker countries replacement of private investment with official financing - something that it says is unsustainable.
Greece, and the Irish Republic and Portugal have all received needed bail-outs, part-funded by the IMF.
The IMF estimates that the 17 member eurozone will see economic growth of 2% this year - higher than a previous estimate in May - but that will fall to 1.7% in 2012, lower than the May forecast of 1.9%.