Broadly in line with our expectations, the euro area economy continues to grow, though still with modest momentum.

The domestic economy remains relatively resilient.

Yet, global factors weigh on euro area growth.

To be sure, there are tentative signs of stabilisation, forward-looking indicators have become in slightly more optimistic

While uncertainties surrounding the global economic environment remain elevated, those related to trade tensions between the United States and China are receding

Other risks, however, are still lingering or - as for the uncertainty surrounding the impact of the coronavirus - are a renewed source of concern.

The overall moderate growth performance is delaying the pass-through from wage increases to prices and inflation developments remain subdued