According to the European Central Bank, the eurozone economy is still growing, in its recovery following the crisis. The ECB does point out however that there are still several factors slowing down growth.
More income to spend
In its monthly economic report, the ECB pointed out that the economic situation in the euro area is backed by domestic demand and continuous investments. It also points out that the bank’s policy to improve financing conditions has resulted in continued support for those investments. Low oil prices, among other things, have also helped free up more income for consumers to spend.
Nevertheless, caution is still necessary, because the balance sheet adjustments in several branches will act as a brake on the overall recovery. The ECB remains cautious about its own economic growth forecast.
