This assessment is broadly reflected in the June 2019 Eurosystem staff macroeconomic projections for the euro area, which foresee annual real GDP increasing by 1.2% in 2019, 1.4% in 2020 and 1.4% in 2021.
The risks surrounding the euro area growth outlook continue to be tilted to the downside, on account of the prolonged presence of uncertainties related to geopolitical factors, the rising threat of protectionism and vulnerabilities in emerging markets. According to Eurostat’s flash estimate, euro area annual HICP inflation was 1.2% in June 2019, unchanged from May 2019.