Compared to the past crises, the EMEs, in general, are now resilient and in a better position to absorb a financial shock. They have developed resilience to shocks by improving their macroeconomic conditions and regulatory frameworks. EMEs have been achieving a healthy growth with more or less stable inflation and have reduced their dependence on external demand.
Let me now explain our assessment in greater detail, starting with the economic analysis. Following a six-quarter economic contraction in the euro area, recent confidence indicators based on survey data have shown some further improvement from low levels and tentatively confirm the expectation of a stabilisation in economic activity at low levels. At the same time, labour market conditions remain weak.