First, there are the risks originating from the past accumulation of macroeconomic imbalances outside the euro area, and lately concerns have arisen with regard to the SARS virus.
Moreover, there is also some uncertainty over the extent of the adjustment still needed in the euro area corporate sector in order to enhance productivity and profitability, which could have an impact on employment growth and thus private consumption. As regards price developments, the annual rate of HICP inflation generally fluctuated at around 2.3-2.4% between the autumn of last year and March 2003.