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Euro-Area Economy Powers On

Reports this week are forecast to show strong growth and weak inflation

The euro area is set to start the new year the way it ended the old: The economy is strong but inflation weak. Reports on Tuesday will probably show that fourth-quarter gross domestic product grew of 0.6 percent, the 19th straight expansion, with economic confidence in January at the strongest level since 2000, according to Bloomberg surveys. Data on Wednesday will likely show inflation weakened to 1.3 percent this month, with underlying price growth picking up slightly to 1 percent.

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