Looking at the information provided under the second pillar, the outlook for growth in the euro area has improved further since our last meeting in March, while upward risks to consumer price inflation have continued to increase. There is widespread consensus among the forecasts from major international organisations and private institutions that real GDP growth will exceed 3% this year and next year.
This is significantly higher than projected at the end of last year or earlier this year. On the domestic side, this positive outlook reflects expectations that growth in domestic demand will benefit, in particular, from ongoing employment growth and higher rates of capacity utilisation.