A meaningful recovery will elude the eurozone until at least the second half of this year, the Organisation for Economic Co-operation and Development said on Thursday.
The Paris-based multilateral body whose members are mostly developed nations also warned of the risk of asset-price bubbles emerging in the currency bloc. The surge in equity and bond prices across the G7 is, as yet, unjustified by countries’ economic performance.
“Real activity has yet to reflect fully the improvement in financial market sentiment, especially in the euro area. This highlights the risk of asset prices getting out of line with fundamentals, especially as regards corporate securities,” Pier Carlo Padoan, chief economist at the OECD.
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