The expansion in the euro area economy is set to continue, buoyed by global economic activity growth and export demand.
In Q1 and Q2 2018 the Eurozone economy is expected to grow at a similar pace compared to the end of 2017 (+0.6%), then slightly slower in Q3 (+0.5%).
The main force behind the expansion in economic activity will be investment, driven by favourable financing conditions and still upward trending capacity utilization.
Investment is forecast to strengthen in Q1 2018 with a slight deceleration in Q2 and Q3. Private consumption expenditures are expected to grow robustly still supported by the improvements in the labour market. Inflation is set to rise only in the second part of the year.