Economic growth is forecast to moderate over the forecast horizon (+0.3% for each quarter) with domestic demand expected to be the main driver even if with a decelerating path.
Annual headline inflation is expected to be around the ECB target of 2% in the last quarter of 2018 (year over year) and then to decline again to in the following quarters.
The risks are still balanced but they are moving to the downside due to uncertainties related to economic and political factors.
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