Consumption growth in the euro area should also contribute to economic growth, in line with developments in real  BIS Review 111/2007  1  disposable income, as employment conditions remain supportive.
That said, in view of the potential impact of increased financial market volatility and the re-pricing of risk on the real economy, the uncertainties surrounding this broadly favourable outlook for economic activity have increased. On balance, risks to the outlook for growth are judged to lie on the downside.