Nevertheless, extra-euro area export volumes have been growing above their historical trend in recent years due to the persistently robust growth in foreign demand which, in turn, seems to be driven by globalisation forces. However, competitiveness is a key issue and important questions remain on how exposed the euro area and its members are to competition from emerging economies.
The macroeconomic picture In 2017 Italian economic growth strengthened considerably more than had been expected at the beginning of the year, while economic expansion became more balanced across demand components and economic sectors. GDP has been supported by domestic demand. Households’ consumption has benefited from steadily improving labour market conditions and rising confidence.