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Vindicating our and market expectations, Q1 GDP readings overall confirmed a good start in the year. Now that the detailed break-down for all the economies is available, it would be fair to say that domestic demand was in the driver’s seat behind growth in Q1. Lax monetary policies together with much lower world energy prices -on an annual basis despite their recent rally in the last couple of months- continue to provide a positive boost on the growth momentum. Although this boost is destined to eventually fade away as energy prices normalize, it is poised to carry throughout 2016 as well; low energy costs keep inflation pressures subdued, supporting real disposable incomes and providing more flexibility to household, corporate, and sovereign balance sheets.