Euro area’s economic recovery relies on domestic demand

Euro area economic activity showed a moderate recovery and consumer prices coming into the targeted range. 

Similarly, trade volumes are slowly adjusting to the currency movements. The euro is noticed to soften by more than 11% in real effective terms since the early 2014. On the other hand, exports have improved by 6 percent. 

"Exports edged up just 0.3% m/m (Q3: -1.3% q/q) and any potential growth contribution is likely to have been offset by a similar increase in imports. Unless global demand picks up decisively (not our baseline), we think growth support from net trade is likely to remain flat (at best), leaving the euro area's economic recovery in the hands of domestic consumers", states Barclays.