European Economy. Quarterly report on the euro area 2002. No. IV

Abstract

The economic recovery in the euro areastarted in the first quarter of this year, but hasfailed to accelerate. Domestic demand hasstayed weak all year, undermined by stockprice falls and an uncertain geopolitical,corporate and employment outlook. Recently,some of the shocks which hamperedeconomic recovery during the course of theyear have begun to unwind. For instance,equity prices have rebounded from theirOctober lows. Oil prices, although again on aslight upward trend since mid-November,have remained below their peak of earlyOctober.