This dramatic event has had adverse effects on the world economy, including the euro area. It has led to the most severe and synchronised economic downturn since the 1930s. But recent information is encouraging. The massive response to the crisis on the part of governments and central banks seems to be bearing fruit.
Available data suggest that the free fall in economic activity has come to a halt and the global recession is bottoming out. However, uncertainty remains high, with data on economic activity likely to remain volatile. The key challenge in the period ahead will be to unwind in a timely manner the extraordinary and unprecedented measures taken in response to the crisis.