Moreover, it is by now quite clear that the world economy will suffer from these developments in 1999 and that the euro area will also be affected to some extent. However, the crucial and widely debated issue is the degree to which such effects on the euro area will materialise and how long they may last.
As matters stand, there appears to be consensus that euro area economic growth will slow down to some extent in 1999, driven largely by a weakening in net exports. In its latest forecast, published on 21 October 1998, the Commission has revised downwards aggregate euro area real GDP growth to 2.6% in 1999, compared with 3.2% projected earlier this year.