While euro area economic activity moderated in the first quarter of 2018, following high levels of growth in 2017, the fundamentals remain in place for continued solid and broad-based economic growth. In fact, economic growth continues to be supported by the domestic strength of the economy. Private consumption growth is expected to remain robust thanks to continued improvements in the labour market.
The unemployment rate is at its lowest level in almost ten years, while the number of people employed in the euro area has increased by some eight and a half million since mid-2013. The outlook for business investment continues to strengthen and is supported by the favourable financing conditions, an improvement in profitability and solid demand.