The improved situation on the labour market is likely to have contributed to the positive development in domestic demand. The euro-area unemployment rate stood at 10.2% in March, which is still well above the pre-crisis level; this figure is, however, at its lowest level since August 2011.
The current economic indicators predominantly suggest that the upward economic trend is set to continue, albeit at a somewhat slower pace than at the end of 2015. The ECB revised its growth forecast down slightly in March owing, first and foremost, to the slowdown in growth outside the euro area. It is still, however, projecting euro-area growth of 1.4% for this year.