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- ECB survey sees slower growth, faster inflation this year
ECB survey sees slower growth, faster inflation this year
Reuters reports that a European Central Bank survey showed that euro zone economy will grow slower this year than earlier thought while a temporary surge in inflation is likely to exceed a previous projection.
But with vaccinations finally progressing, the economy is likely to grow quickly in the coming quarters, even if this rebound is now seen somewhat delayed, the latest edition of the ECB's Survey of Professional Forecasters, showed.
The euro zone economy is seen expanding by 4.2% this year, below a previous projection for 4.4%, but next year's growth outlook was upgraded to 4.1% from 3.7%, indicating that the eventual rebound could be steeper than earlier seen.
Inflation this year is now seen at 1.6%, according to the survey, above the 0.9% projected three months ago and also above the 1.5% forecast by the ECB staff in March.
But projections beyond 2021 were left unchanged with the 2025 forecast still at 1.7%, below the ECB's target of almost 2%, indicating that the bank is on course to undershoot its target for well over a decade.
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