A review of recent data, new ECB staff macroeconomic projections and an interim evaluation of recent market fluctuations point to a continued, although somewhat weaker, economic recovery in the euro area and a slower increase in inflation rates compared with earlier expectations. The changed outlook is due to a considerable extent to external developments. While the world economy is gradually expanding, it remains on an uneven path. On the one hand, economic activity in advanced economies is being supported by low oil prices, continued accommodative financing conditions, a slower pace of fiscal consolidation and ... (full story)