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Euro Area Looks Strong But Weak as Economy Powers On in 2018

  • Data this week should confirm strongest GDP growth in a decade
  • Inflation rate seen as lowest in a year, well below ECB goal
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The euro area is set to start the new year the way it ended the old: the economy is strong but inflation is weak.

The region’s fastest growth in a decade will be confirmed this week in a burst of data that should also show economic confidence at the highest since the currency bloc’s early days, unemployment at a post-crisis low, and manufacturing continuing to boom. Yet inflation, the key metric for the European Central Bank, will probably be the slowest in six months.