The European Central Bank (ECB) has become slightly more cautious about the prospects for economic recovery in the eurobzone.
But in its August monthly bulletin, the ECB insisted recent data "do not contradict the view that a gradual recovery in economic activity in the euro area is under way".
Most survey data and leading indicators "improved further in the second quarter compared with the first, albeit at a rather slower pace, pointing to somewhat stronger economic activity in the second quarter of the year.
"Looking ahead, a continuation of the recovery remains the most likely scenario," the ECB said.
Experts are now expecting the euro zone economy to grow by 1.2 per cent this year, slower than previously anticipated.
The ECB said the respondents in the latest poll "have revised their expectations for the annual average growth rate of real gross domestic product (GDP) in 2002 to 1.2 per cent, down by 0.2 percentage point compared with the previous survey round".
Among the risks to growth prospects, a number of the participants in the poll "mentioned recent financial market turbulence and its impact on consumer and business confidence and investment decisions," the ECB wrote.
AFP