The euro area has now enjoyed its longest period of sustained growth since the euro was introduced in 1999. The forecast projects that euro area GDP growth will remain stable at 1.2% in 2020 and 2021. For the EU as a whole, growth is forecast to ease marginally to 1.4% in 2020 and 2021, down from 1.5% in 2019. While the external environment remains challenging, continued employment creation, robust wage growth and a supportive policy mix should help the European economy maintain a path of moderate growth. Private consumption and investment, particularly in the construction sector, will continue to fuel economic growth and public investment, especially in transport and digital infrastructure, is expected to increase significantly in a number of Member States. Together with tentative signs of stabilisation in the manufacturing sector, and a possible bottoming out of the decline in global trade flows, this should allow the European economy to continue expanding. At the same time, these factors appear insufficient to shift growth into a higher gear. Moreover, while some downside risks have faded, new ones have emerged, thus ensuring that overall risk remains tilted to the downside.