Structurally, the working age population is no longer increasing and productivity growth is weak. For a number of years even weaker than in many peer countries. Cyclically, we are still in the aftermath of a strong housing and construction bubble which led to overheating in 2006–07.
According to the Spring forecast of the European Commission (released on 7 May 2007), euro area real GDP growth is forecast at 2.6% in 2007 and 2.5% in 2008. The ECB survey of professional forecasters, recently published (in the May edition of the ECB Monthly Bulletin), points to 2 similar, though slightly lower growth rates in 2007 and 2008.