In the euro area the negative impact on GDP growth of weaker exports has been amplified by a slowdown in domestic demand. Since mid-2018 the outlook for investment has progressively deteriorated due to the adverse effects of increased global uncertainty on firms’ confidence and capital accumulation plans.
As regards monetary policy, central banks in advanced economies have also been doing their part, helping to make the rebalancing process as smooth as possible. Central banks acted within their particular mandates, which in the euro area is to preserve price stability over the medium term.