For the euro area too, the latest information on production and confidence is consistent with an ongoing recovery in economic activity, and the momentum for growth should strengthen in the course of 2004. This assessment is supported by all available forecasts from official and private sources, as well as by developments in the financial markets.
On the external side, recent exchange rate developments are having a negative impact on the price competitiveness of euro area exporters, but thus far this should be partly compensated for by the ongoing expansion of global demand. Overall, euro area exports should therefore continue to grow.