The European Central Bank said today euro zone growth in the first half was likely to be weaker than expected and there was "increased uncertainty" over growth in the second half.
"Real gross domestic product growth in the first half of 2001 is expected to have been below the levels projected earlier, and this has implications for the year as a whole," the ECB wrote in its latest monthly report, published today.
The report said the global slowdown seems to have significantly affected euro-area exports and investment. It said consumption has been weaker than expected, which may be related to higher energy and food prices.
The report said: "There is, therefore, increased uncertainty surrounding economic growth in the euro area in the second half of 2001, especially in light of possible further effects of the deteriorating growth performances in several other regions of the world and of the potential impact of chances in confidence on domestic demand".
AFP