Following strong growth in 2017, the economic expansion in the euro area slowed in the first half of 2018, largely on the back of a weakening in global trade. Although global uncertainties have softened the near-term outlook, the euro area expansion is projected to continue at a pace slightly above potential, reflecting the favourable impact of the very accommodative stance of monetary policy, improving labour market conditions and stronger balance sheets. A slight moderation in real GDP growth, from 2.0% in 2018 to 1.7% in 2020, is mainly explained by a gradual weakening of the stimulus from world trade and growing ... (full story)