In recent months, incoming euro area data have continued to be weak and the economy has grown below expectations. That is, euro area real GDP increased by 0.2% quarter-on-quarter in the fourth quarter of 2018 (according to preliminary estimates), which was slightly up from 0.1% in the quarter before, but well below the 0.4% growth observed in the first half of 2018. The continued weakness, particularly in the manufacturing sector, reflects the slowdown in external demand, compounded by some country and sector-specific factors. The global economy is expanding at a more modest pace. According to IMF estimates, global ... (full story)