To some extent, this acceleration reflected temporary effects. In Japan, despite repeated efforts to resuscitate the economy, growth remains elusive. As the effects of last year's financial stimulus have faded, the economy has stalled again. Deflationary pressures continue. For the euro zone, the EU Commission now expects growth to be 2.8 percent this year, which is a moderate slowdown from last year's 3.4 percent.
Growth remains well in line with potential output.
Good economic fundamentals, growing employment and strong consumer confidence will mitigate the effects of the worsening external environment on the EU economy. The threat of inflation is certainly diminishing, but remains a concern. So far, the EU accession countries are not much affected by the worsening external environment. For several reasons, growth in these countries is expected to remain robust. Exports are not very dependent on trade with the United States.