The economic outlook for the euro area Let me begin with an assessment of the current economic situation in the euro area, the outlook for the medium term and the risks associated with this outlook. In 2005, real GDP picked up in line with our expectations.
The latest available information from economic indicators and survey data suggests that economic activity continues to strengthen, signalling, in particular, an improvement in the manufacturing sector. Growth in domestic demand has increased, owing primarily to higher investment and, to a lesser extent, growth in consumption. Both business and consumer confidence are improving.