Press Release: Euro area economy: sluggish second quarter but signs point to a pick-up in second half of 2005

After a rebound in the first quarter of 2005, economic growth was likely to have been disappointing in the months of April to June as surging oil prices and the lost of momentum of global manufacturing both took their toll on confidence, according to the European Commission's latest Quarterly Report on the Euro Area. But signs of renewed growth in the global economy, a more competitive exchange rate and continuing supportive financial and monetary conditions all pointed to an acceleration of growth in the second half of 2005. The last quarterly report also focused on growth differences in the euro area to conclude that although they were not unusually high historically or by comparison with the United States they required urgent action by some Member States to tackle entrenched structural weaknesses and problems.

• Primary Source