Economic And Market Report - February 2015

The international economic situation over the last year was dominated by geopolitical tensions, weak economic activity, slow-down in global output, and unfavourable business and consumer confidence. The disinflationary trend continued to persist during the year remaining well below the ECB's target of close to but below two per cent. This called for the activation of unconventional monetary policy measures on the part of the ECB in order to ensure price stability and to stimulate growth over the medium term. Fiscal consolidation within the Euro Area continued in its stride with general government debt expected to diminish over the forecasted horizon. Conversely, general government gross debt continued to accumulate albeit at a slower pace than that registered during previous years. The labour market registered marginal improvements in certain member states nevertheless divergence in this regard continued to widen accompanied by ongoing high levels of unemployment