The evidence that has since become available has made us more confident that the recovery did indeed begin in the second half of 2003 and has strengthened our expectation of an upswing in economic activity. An upturn in economic activity is well under way at the global level. This view was shared by all participants at the recent G7 meeting in Florida.
The robust real GDP growth in the economies of the euro area’s major trading partners over the past few months can be expected to support foreign demand for euro area goods and services. Looking ahead, the external environment of the euro area should continue to develop favourably, and the broadly-based global economic recovery should gain further momentum.