Economic activity continued to expandin the first half of 2018, albeit at a slower-than-expected pace, mainly inadvanced Europe. Domestic demand, supported by stronger employment and wages, remains the main engine of growth. However, the external environment has becomeless supportive and is expected to soften further in 2019 owing to slowingglobal demand, trade tensions, and higher energy prices. Tighter financialconditions in vulnerable emerging market economies and maturing business cyclesare also weighing on activity. Accordingly, growth is projected to moderatefrom 2.8 percent in 2017 to 2.3 percent in 2018 and 1.9 percent in 2019. Thatsaid, it is expected to remain above potential in most countries in the region. | Regional Economic Outlook November 2018 Europe by International Monetary Fund, Paperback | Indigo Chapters