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Quarterly (July 03) Report on the Euro Area

02 July 2003, 15:59 CET

According to the latest Quarterly Report on the Euro Area, three factors that have been weighing on growth have improved. The uncertainty associated with the conflict in Iraq is now lifted, inflation is decelerating and financial conditions are becoming more supportive. As a consequence, following virtually no growth in economic activity in early 2003, expectations are still for a modest rebound of activity in the second half of 2003 although cumulative growth in 2003 may turn out to be slightly lower than earlier expected.

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