The Refugee Surge in Europe: Economic Challenges

The International Monetary Fund (IMF) published on the 20 January 2016 a new staff report looking at the refugee surge into Europe, aiming to provide a framework to inform discussions with member countries who have asked the Fund to bring its cross-country experience to contribute to the analysis of this important issue.

'The surge in refugees is a challenge facing many parts of the world. It also has many dimensions – social, political, and economic,' said IMF Managing Director Christine Lagarde, who presented the report at the World Economic Forum in Davos. 'Today we are publishing a new study from IMF staff which focuses on the economic dimension of the refugee challenge facing Europe. The study indicates that, with appropriate policies – especially effective integration into the labour market – the potential from refugees can be harnessed for the benefit of all. The circumstances facing each country are different and so should be the response but, ultimately, the refugee surge is a global challenge that must be met through global cooperation.'

The report suggested that migration into Europe could lift GDP via greater state spending and long-term boost to jobs market with negative effects short-lived.

EurActiv, 20.01.16: IMF recommends paying refugees below the minimum wage http://www.euractiv.com/sections/euro-finance/imf-recommends-paying-refugees-below-minimum-wage-321157

The Guardian, 20.01.16: IMF says refugee influx could provide EU economic boost http://www.theguardian.com/business/2016/jan/20/imf-refugee-influx-provide-eu-economic-boost

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