Chart 1 shows that overseas economies declined significantly for the April-June quarter of 2020, which saw the global spread of the novel coronavirus (COVID-19), but the economies continue to recover thereafter, albeit with variation across countries and regions.
Today exogenous price shocks have modest repercussions on the euro-area economies: the increases in oil prices between 2007 and 2008 were comparable, in real terms, to those at the end of the 1970s, but they generated a one-off rise in consumer prices of less than two percentage points, which did not take hold in inflation, in contrast to what happened in the past in several countries in the area.