Press Release: Commission indicator forecasts euro area quarterly GDP growth of 0.2% to 0.6% for the third quarter and 0.4% to 0.8% for the fourth quarter

The indicator-based model for quarterly GDP growth for the euro area, developed by the European Commission's Directorate General for Economic and Financial Affairs, forecast a range 0.2% to 0.6% for the third quarter of 2005, unchanged compared to the previous release. The first forecast for growth in the fourth quarter of 2005 was a range of 0.4% to 0.8%, supported by the lagged effects of favourable exchange rate developments and an improved international environment.