Europe’s economy is unlikely to crash — even as a more-than yearlong bout of interest-rate increases tames inflation, according to the International Monetary Fund.

“The outlook for Europe is for a soft landing, with inflation declining gradually,” the Washington-based lender said Wednesday in a report, predicting growth in gross domestic product in the wider region will slow to 1.3% in 2023, improving slightly to 1.5% in 2024.