This means that world trade, too, will finally gain more impetus, with growth accelerating from 2.4% last year to 4.2% this year. That is good news for German exporters. The debates on trade restrictions, which are being conducted in some countries, are causing headaches for export-oriented enterprises, however. Protectionist tendencies, alongside geopolitical conflicts, are among the most significant downside risks to global economic activity.
Economic activity, especially in the euro area, is also being buoyed by what remains a very accommodative monetary policy. And let me add that, with inflation still muted, I believe that an accommodative monetary policy stance is still appropriate for the euro area. Views can differ over the correct degree of monetary policy expansion and the proper instruments, however.