Economic activity has rebounded strongly on the back of waning COVID-19 infections and expansionary fiscal and monetary policies. However, strong import growth-fueled by the macroeconomic policy mix, higher international commodity prices, and credit growth-have led to a marked deterioration of...

Following a deep recession in 2020 and further contraction in 2021Q1, the euro area economy recovered rapidly in the second and third quarters thanks to high vaccination levels, increasing household and business adaptability to the virus, and continued forceful policy support. Looking ahead,...