Looking back over the past twelve months, these factors became the dominant drivers of market movements, as was anticipated at the time. The gradual improvement in the major economies that was expected a year ago has continued, by and large, to materialise. Global economic growth has picked up, albeit unevenly.
While some of these factors are likely to unwind, this may suggest some slower growth momentum ahead. At the same time, domestic demand, also backed by our accommodative monetary policy stance, continues to underpin the economic expansion in the euro area. The strength of the labour market, as reflected in ongoing employment gains and rising wages, still supports private consumption.