I am cautiously optimistic and expect that the economic recovery in the euro area will pick up momentum in the course of 2005. The somewhat lower GDP growth projected in 2005 by ECB staff compared to earlier projections mainly reflects the carry-over effect of weaker economic developments in 2004 rather than a downward revision of the expected pick-up of activity this year.
There are some signs of an upturn in investment. As far as consumption is concerned, we expect that it will increase in line with real disposable income, which is projected to rise by about 1.4% in 2005. Despite the increase in oil prices? Oil prices are assumed to decrease gradually in the future as implied by futures markets.