Even if one does not entirely share the European Central Bank’s (ECB) upbeat view of the euro area’s incipient economic recovery, one has to acknowledge its constant efforts to alleviate the socio-political damage done by austerity and reform-at-all-costs zealots.
The ECB has been working for the last six years against unreasonably harsh fiscal policies, whose depressive impact was exacerbated by constant market-jarring statements of north European politicians bent on teaching a punishing lesson to allegedly south European spendthrifts – economies which account for 53 percent of the monetary union. In spite of that, the ECB managed to help stabilize last year the euro area’s domestic demand, after an average 1.6 percent annual decline in the previous two years.
The euro area’s appropriately easy monetary policies have also set in train export-induced growth dynamics. Last year, for example, net exports accounted for all of the area’s economic growth estimated at about 0.9 percent.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.