The ongoing war is first and foremost a human tragedy causing enormous suffering. But it is also affecting the economy, in Europe and beyond. Economic activity is expected to continue to grow this year, albeit at a slower pace than was expected at the start of the year.
Conditions in financial markets and the economy Conditions and sentiment in financial markets have continued to improve in recent months. Pressures in short-term funding markets have eased considerably, broad stock price indexes have increased, risk spreads on corporate bonds have narrowed, and credit default swap spreads for many large bank holding companies, a measure of perceived riskiness, have declined.