Riga, 2 October 2024

It is a pleasure to talk to you today about reviving productivity growth in the euro area – a critical challenge that demands urgent attention and collective action.

I would like to start by outlining recent economic developments.

After more than a year of stagnation, economic activity in the euro area recovered mildly in the first half of 2024, with considerable variation across countries and sectors. Growth, however, was weaker than expected in the second quarter of the year. The euro area growth outlook was revised down in September, compared with the June Eurosystem staff projections, with risks to growth remaining tilted to the downside. Looking ahead, we expect the recovery to strengthen over time, as rising real incomes and the gradually fading effects of restrictive monetary policy should support…