This being said, unemployment in the euro area remains high, and the necessary balance sheet adjustments in the public and private sectors will continue to weigh on economic activity. The risks surrounding the economic outlook for the euro area continue to be on the downside.
Developments in global money and financial market conditions and related uncertainties may have the potential to negatively affect economic conditions. Other  BIS central bankers’ speeches  1  downside risks include higher commodity prices in the context of renewed geopolitical tensions, weaker than expected global demand and slow or insufficient implementation of structural reforms in euro area countries.