The euro area stabilised during the third quarter although inflation and price pressures remains muted. During the second half of 2016, the euro area’s recovery is expected to continue. The immediate impact of the U.K’s referendum result to leave the E.U. has been less disruptive than many anticipated. Nonetheless, uncertainty regarding the new economic and financial agreements that will be reached between both entities is the main risk overshadowing the euro area’s recovery.
Read the full chapter: QB4 2016 Developments in the Euro Area Economy.