Euro area by Organisation for Economic Co-operation and Development


Authors
Organisation for Economic Co-operation and Development
ISBN
9789264206885
Published
Binding
Paperback
Pages
79

The euro area economies, including those most heavily hit by the crisis, appear to be turning the corner after many years of low and uneven growth. Confidence has improved and progress been made in reducing fiscal and current account imbalances and improving competitiveness in many vulnerable countries. Structural reforms have also strongly progressed in these countries. However, economic activity remains uneven and fragile. Unemployment rates stand at double-digits in several countries, and in most are more than twice as high for the young. Inequalities have widened. Weak private sector balance sheets and impressive fiscal consolidation, necessitated by high sovereign debt, still bear on demand. The impact of supportive monetary policy is weakened by financial fragmentation, with inflation rates having fallen to around 1%. Persistent very low policy interest rates are supporting economic activity; if maintained for a long period, this could feed asset.
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