Euro-zone economic outlook

Geopolitical turbulences, associated to the negative evolution of the world merchandise trade, affected negatively the international outlook. In this context the economic growth for the euro area is forecast to be sluggish.

Private consumption expenditures are expected to be the main driver while gross fixed capital formation remains modest.

Annual inflation is expected to be around 1% until the end of the year and to pick up at the beginning of 2020.

Risks to the outlook are to the downside and continue to originate from global trade tensions and the unconcluded Brexit process.