Communication from the Commission 1. THE EURO AREA ECONOMY IN 2009 In the wake of the shockwaves of the worst crisis since the 30s, signs of economic stabilisation are emerging. Throughout the world, important policy interventions have succeeded in achieving a degree of stability in the financial system. Financial conditions have improved over the summer, with several financial indicators returning to pre-crisis levels. Business and consumer confidence indicators also have improved in recent months. World trade has stabilised, and there are indications that the destocking cycle is bottoming out. The relative resilience of consumption has proved to be a stabilising factor during the recession, as disinflation and relief measures included in fiscal stimulus packages have supported household incomes. According to the latest interim forecast published by the Commission services in September 2009, growth in the euro area is set to fall by 4% in 2009, unchanged from the Spring 2009
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