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have boosted construction activity. however, the high growth rate in the first quarter might be partly offset in the second. it is therefore more appropriate, in order to avoid being misguided by highly volatile quarterly results, to evaluate the first two quarters of 2008 together. in line with available forecasts, both domestic and foreign demand are expected to support ongoing real gdp growth in the euro area in 2008, albeit to a lesser extent than during 2007. while moderating, growth in the world economy is expected to remain resilient, benefiting in particular from continued robust growth in emerging economies. this should support euro area external demand. the fundamentals of the euro area economy remain sound, and the euro area does not suffer from major imbalances. against this background, we expect investment growth in the euro area to provide ongoing support to economic activity, as capacity utilisation remains solid and profitability in the non - financial corporate sector has been sustained. moreover, employment and labour force participation have increased significantly, and unemployment rates have fallen to levels not seen for 25 years. these developments support disposable income, although purchasing power is being dampened by the impact of higher energy and food prices. this outlook is also reflected in the june 2008 eurosystem staff macroeconomic projections. the projections foresee average annual real gdp growth in a range between 1. 5 % and 2. 1 % in 2008 and between 1. 0 % and 2. 0 % in 2009. in comparison with the march ecb staff projections, the current range projected for real gdp growth in 2008 is within the upper part of the range published in march 2008, mainly as a consequence of the better than expected outcome in the first quarter. for 2009, the range has been adjusted downwards, following the increase in commodity prices over recent months. the year - on - year growth rates which i have just mentioned need to be interpreted with particular caution on this occasion. while the annual rates suggest that growth may be weaker in 2009 than in 2008, they mask the fact that on a quarterly basis real gdp growth is projected to reach a trough in 2008, before gradually recovering thereafter. in order not to draw the wrong conclusions about the growth dynamics implied in the staff projections it is important to keep this distinction in mind. in the governing council ’ s view, the uncertainty surrounding this outlook for economic growth remains high, and downside risks prevail. in particular, risks continue to relate to the potential for the financial market turbulence to