Oct. 4 (Bloomberg) -- The euro-area economy will continue to grow “moderately” for the remainder of the year as the region grapples with the sovereign debt crisis and global expansion slows, the Irish Central Bank said.
“The expansion in domestic demand is expected to remain at a weak pace as austerity measures in many countries restrict consumer and government spending while, against the backdrop of the current global economic soft patch, export growth may also be modest,” the Dublin-based central bank said in its quarterly bulletin today.
Europe’s leaders are struggling to prevent a Greek default and contain the region’s fiscal crisis, which is roiling global financial markets. Still, manufacturing in the U.S., China and the U.K. unexpectedly rebounded last month while production in the euro region contracted less than initially estimated, suggesting the global economy is more resilient than initially estimated.
“Euro-area activity should continue to benefit from ongoing growth in the global economy as well as from the accommodative monetary policy stance and the various measures taken to support the functioning of the financial sector,” the Irish central bank said.
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