European Economy. Quarterly report on the euro area 2003. No. II

Abstract

Directorate General for Economic and Financial Affairs- 3 -EditorialEconomic activity was sluggish in the euroarea during the first half of 2003. Growth,which had been decelerating since mid-2002,came to a halt at the beginning of the year asgeopolitical uncertainties underminedconfidence. The dissipation of uncertaintiesrelated to the Iraq crisis has not beenassociated with a significant recovery ofbusiness and consumer confidence. Availableevidence suggests that growth remainedanaemic during the spring and is unlikely tobounce back strongly over the summer