We have avoided severe impairments in the provision of credit to  2  BIS Review 101/2010  firms and households, and have prepared the ground for a gradual recovery of the euro area economy from the worst cyclical downturn experienced since the Great Depression. Indeed, after a period of sharp decline, the outlook for growth is improving.
Business and consumer confidence indicators have trended upwards over the last few quarters and the Eurosystem staff macroeconomic projections, as well as those of other organisations, foresee a further rebound in GDP growth in 2010 and 2011. The outlook for growth is also supported by the improvements that we see in the financial market.