However, the crisis is now affecting the core countries through trade and financial channels and a rapid deterioration in corporate and consumer sentiment. Consequently, the euro area has reentered a recession, and this has contributed to a slowdown in global economic growth.
The sluggish economy in the euro area is likely to last at least until the end of the year, according to European Central Bank (ECB) estimates released last month (whereby the central rate of real GDP growth rate for 2012 was adjusted downward from minus 0.1 percent in June to minus 0.4 percent in September).