Driving factors of and risks to domestic demand in the euro area

Malin Andersson and Benjamin Mosk

Economic Bulletin Boxes, 2019, vol. 1

Abstract: Activity in the euro area is expected to continue to expand at a moderate pace, while more elevated uncertainty points to intensified downside risks to the growth outlook. In the context of a maturing business cycle, growth in both private consumption and business investment are expected to continue, despite a more uncertain environment. Nevertheless, the resilience of the domestic demand components, in particular investment, could be particularly challenged by increasing global uncertainty related inter alia to an escalation in trade tensions. JEL Classification: E21, E22, E32

Keywords: Domestic demand; investment; private consumption; uncertainty (search for similar items in EconPapers)
Date: 2019-02
Note: 427284
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2019:0001:2

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