In the coming quarters consumption growth could benefit from anticipated developments in real disposable income. Investment is expected to continue to benefit from very favourable financing conditions, robust earnings and greater business efficiency. Euro area exports should continue to benefit from strong world economic growth.
Accordingly, we expect continued relatively moderate economic growth in the euro area in 2005 and 2006, as reflected in the ECB staff projections published earlier this month, which are broadly in line with available forecasts from international and private sector organisations. Nevertheless, the outlook for economic activity continues to be surrounded by uncertainties.