The European economy is forecast to continue expanding for the seventh year in a row in 2019, with real GDP expected to grow in all EU Member States, according to the Spring Economic Forecast issued on 7 May. GDP is forecast to grow by 1.4% in the EU this year and 1.2% in the euro area. The recent slowdown in global growth and world trade, however, together with high uncertainty about trade policies, is weighing on prospects for GDP growth in 2019 and 2020. Moreover, the continued weakness of the manufacturing sector is also playing a role, especially in those countries encountering specific problems in the automobile industry. At the same time, more Europeans are now in work than ever and employment growth is expected to continue, albeit at a slower pace. This, together with rising wages, muted inflation, favourable financing conditions and supportive fiscal measures in some Member States, is expected to buoy domestic demand, and growth is expected to gather pace again next year. Downside risks to the outlook include the risk of protectionist measures worldwide and a more persistent slowdown in world GDP growth and trade, as well as a ‘no-deal' Brexit, a rise in political uncertainty in Europe, and more enduring disruptions to manufacturing. On the positive side, private consumption and investment in the EU could prove more resilient than expected, particularly if accompanied by stronger-than-assumed fiscal policy measures and growth-enhancing reforms in some countries.