A grey area

The euro area is five years into an economic upswing. Though growth is likely to slow, loose monetary policy and recovery elsewhere in the world mean GDP will increase by 2.2% in 2018 and 2.1% in 2019, according to the OECD, a club of mostly rich countries. Labour markets are improving and support for the common currency is at an all-time high. However, high levels of public debt still burden several countries. The legacy of the financial crisis of 2007-08 remains stark: the Greek economy is 24% smaller than in 2007 and the Italian economy 4% smaller. Aggregate investment in the euro area is not expected to reach pre-crisis levels until 2019.

This article is from our print edition.