European Economy. Quarterly report on the euro area 2009.

Abstract

The economic recovery in the euro area is gathering momentum, albeit at a modest pace. GDP growth turned positive in the third quarter. Latest economic confidence indicators are broadly in line with our growth forecast, which projects GDP growth to reach 0.7% in 2010 as a whole and to accelerate to 1.5% of GDP in 2011. However, let’s not forget that the current recovery is underpinned by massive economic support provided by governments around the world, which will eventually have to be scaled back. Moreover, high and still rising unemployment, one of the topics addressed in this issue of Quarterly Report on the Euro Area, reminds us of the important policy agenda ahead of us.