According to the latest ECB staff projections the average annual real GDP growth is foreseen in a range between 1.1% and 1.7% in 2008 and between 0.6% and 1.8% in 2009.
In the view of the Governing Council, uncertainty surrounding growth prospects is particularly high at the current juncture, with downside risks mainly relating to renewed increases in energy and food prices and a potentially more negative impact of financial market developments than currently foreseen. The monetary analysis confirms the prevailing upside risks to price stability at medium to longer horizons.