The moderate recovery in the euro area is ongoing, however, and the economy has picked up further momentum. The latest Eurosystem staff macroeconomic projections for the euro area see annual real GDP increasing by 1.5% in 2015, 1.9% in 2016 and 2.0% in 2017.
The German economy has recovered more quickly than expected from the cyclical lull in the middle of last year and has returned to a growth path that is underpinned by both domestic and foreign demand. Domestic economic activity is benefiting from the favourable labour market situation and the substantial increases in income.