Owing to a less favourable external environment, a moderation in real GDP growth in the euro area from the high levels reached in 2000 is expected in 2001, and this should dampen upward pressure on consumer prices. Data on economic activity recently released in the euro area, like industrial production in March, and business confidence indicators confirm this picture of a moderation in growth.
This notwithstanding, currently available forecasts, both by international organisations and private institutions, expect that economic growth in the euro area will, supported by domestic demand, be broadly in line with trend potential growth in 2001.