As expected, economic growth in the euro area slowed towards the end of 2007. The European Commission made a downward revision to its 2008 growth forecast. Real GDP growth in the euro area declined from 2.6% to 2.2% in the final three months of 2007. In view of the expected lower global economic growth, which is also signaled by the Ifo world economic climate index, the European Commission reduced its autumn forecast for 2008 to 1.8%. The European Commission projects a stronger deceleration in all of the main member states this year than expected in the autumn and warns of significant downward risks. The slowdown in global economic growth and the stronger euro will negatively affect export growth, which will be even more noticeable in countries with weak competition (France, Italy).