While financial market volatility appears to have contributed to this decline, these indicators remain above their historical averages and therefore continue to point to sustained growth during the second half of 2007. The recent financial turmoil has generally raised the degree of uncertainty about the outlook for economic activity in the euro area.
This is sometimes challenged by some financial institutions and market participants that see that the market is fortunately functioning again and have forgotten that governments put over 25% of GDP of taxpayer risks on the table and that major central banks have engaged in non-conventional measures, which have been absolutely extraordinary.