The recovery in investment is supported by improvements in corporate profitability and the very favorable financing conditions. Buoyant foreign demand supports euro area exports, though the recent appreciation of the euro represents a source of uncertainty for the overall contribution of net trade to economic growth.
1/9  BIS central bankers' speeches  Headline inflation is expected to decline in the short term, driven mainly by base effects in the energy component. Looking further ahead, headline inflation is expected to remain clearly below a level that is consistent with the ECB inflation aim over the next two years, averaging 1.5% in 2019.