The European economy as a whole is likely to stagnate for the time being and subsequently return to a moderate recovery path. Given that disparities in competitiveness are becoming apparent among European countries, it is possible that the pace of recovery will be extremely slow. Due attention should continue to be paid to the risk that economic stagnation might become chronic or prolonged.
As for the United States, several favorable economic indicators have been released recently and the economy is recovering moderately. The year-on-year rate of change in the consumer price index (CPI) for all items less food and energy has been stable at about 2 percent.