Oecd Economic Surveys Euro Area 2004.

Developments in the first five years of the single currency have been challenging.

The global slowdown has affected the euro area more strongly than had been expected, with below potential growth continuing for four years.

Growth has been recovering more slowly than elsewhere, with domestic demand staying weak as consumer confidence failed to rebound.

The OECD is projecting the recovery to strengthen in 2005, with growth of 2.5 per cent, inflation to be around 1.5 per cent, though unemployment is expected to remain high.