Starting with the economic analysis, the latest data on euro area production as well as survey evidence on business confidence remain consistent with ongoing growth around the turn of the year. Looking ahead, the external environment of the euro area should continue to develop favourably.
In particular, robust real GDP growth in our major trading partners’ economies can be expected to support foreign demand for euro area goods and services, while export growth may be dampened somewhat by the decline in price competitiveness. The conditions for an improvement in domestic demand are also favourable.