But there is better news elsewhere: the euro zone is doing badly, but things have improved. The IMF has upgraded its growth forecasts for the zone by 0.3%, and 0.5% for Spain, one of the hardest-hit countries. The weak euro and low oil prices are proving an economic boon, it seems. Quantitative easing, which began in March, has boosted equity and bond markets. However, the euro-zone upturn should not be mistaken for a renaissance. Neither France, the second-biggest economy in the currency bloc, nor Italy, the third-biggest, is expected to muster growth above 1% this year. The longer-term prospects are even worse.
The IMF also pours some cold water on the euphoria that has surrounded Russia in the last few months. Since February the rouble has appreciated by about a third. The Fund, though, now thinks that Russia will see a deep recession this year, of about 4%, much worse than its prediction back in January. No other big economies are doing nearly as badly.
