However, short-term indicators suggest that the pace of growth has cooled somewhat in early 2018.1 Some of this could be explained by temporary factors – such as the cold winter in Europe – but recent data points to some moderation in the pace of economic growth from the high rates observed at the end of 2017.
Nevertheless, the overall economic outlook for the euro area is strong, supported by favourable financial conditions, a strong labour market and steady income growth. Yet, forecasts are always uncertain, and this one is no exception. Currently, risks to the mediumterm economic outlook seem to be tilted on the downside.