In commodity markets, oil prices increased further compared to the previous Inflation Report, reflecting Chart 3 Revisions of real GDP growth forecasts for  Chart 4 Movements in GDP and economic activity indicators  2018 and 2019 by the IMF  of the euro area (quarterly rates)  (in %) 7  2018 (previous projection) 2019 (previous projection) 2018 (new projection) 2019 (new projection)  6 5  6,6  2  60 55  1  50  4  0  3  2,2 2  (in index points)  (in %)  6,4  2,0  2,7 2,5  2,3 2,0  45  1,7  1,4 1,1  -1  1,5  40  1  -2  China  Russia  USA  Italy  Germany  Euro area  0  GDP, s-a (LHS)* EuroCoin (LHS) Eurozone composite PMI (RHS)  -3  35 30  I III I III I III I III I III I III I III I III I III I III 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sources: Eurostat, Markit Group and Banca d’Italia.
This has the benefit for lowering global inflation, but as a major commodity exporter, it affects our terms of trade and our ability to earn foreign exchange. Finally, monetary policy and changes in monetary policy in advanced economies is causing excessive volatility in the rand exchange rate.