More fundamentally, the euro area has not accumulated imbalances in the real economy or the financial sector that would require a pronounced adjustment. Therefore, economic growth in the euro area is expected to remain solid.
Available forecasts (including those of the European Commission, the OECD and the IMF) suggest that actual growth will be in line with or above the trend potential growth in 2001 and 2002. While the somewhat slower pace of economic activity this year will reduce the risk of inflationary pressures, recent consumer price developments have been very much affected by energy and food prices.