Recent monetary developments (the growth of M3 and especially of credits to the private sector) signal, however, a rather generous liquidity situation in the euro area while with the acceleration of the economic growth the balance of risks to price stability is at present on an upward trend.
Led by a resurgent auto industry, manufacturing output has also nearly returned to its prerecession peak. While the housing market still has far to go, it seems to have turned a corner. It is a sign of how far the economy has come that a return to full employment is, for the first time since the crisis, in the medium-term outlooks of many forecasters.