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Euro area monetary policy has been highly accommodative, and the euro area economy is getting back on track. An abrupt halt in the Chinese economy would be the greatest risk to euro area growth. The articles were first published in Finnish on 24 September 2015.

According to the Bank of Finland forecast, later summer developments in China have increased the degree of uncertainty in the international economy. World trade growth is also slower than before.

The ’Great Recession’ has lasted seven years now, with a permanent weakening in economic growth. Structural reforms are now needed to kick-start growth.

A slowing in the pace of growth is a natural part of China’s development and a rising standard of living. The size of the country and the decline in the size of the working-age population, by themselves, place limits on growth.

A slower recovery in the euro area would present new challenges for monetary policy. The ECB Governing Council monitors all incoming information. The asset purchase programme provides sufficient flexibility in terms of adjusting the size and duration of the programme. The package of articles on monetary policy and the international economic forecast will be published in English on 2 October 2015.

The strengthening of economic growth via monetary policy measures does also support financial stability.