OECD, (2016), “OECD Economic Surveys: Euro Area 2016”, OECD Publishing, June
Growth has picked up gradually over the past two years, supported by very accommodative monetary policy. The effect of fiscal policy on domestic demand has turned broadly neutral. But unemployment is still very high in many euro area countries, investment has been sluggish and credit remains weak. Inflation is well below target and market-based measures of inflation expectations have been drifting down. Tackling these interconnected problems requires resolute and co-ordinated action by euro area countries to support aggregate demand and strengthen the financial sector to unlock credit growth.
Relevant Posts
- OECD, (2016), “OECD Economic Surveys: European Union 2016”, OECD Publishing, June
- OECD, (2016), “OECD Regions at a Glance 2016”, OECD Publishing, 16 June