Inflation, GDP outlook falls in ECB survey

Friday, 25. October 2019 10:55

Financial experts said in a quarterly update that harmonized price growth in the Eurozone should come in at 1.2% this year and next, followed by 1.4%, and getting to 1.7% in the longer term, the European Central Bank said on Friday. The inflation estimates were cut by 0.1 percentage points for 2019 and 2021 and by 0.2 points for next year, while the print for the horizon, determined as 2024, was unchanged.

The forecasts for this year and 2020 were revised lower four the fourth time in a row amid lower oil prices, outturns below forecasts and clouded economic outlook, the report revealed. Underlying inflation is seen at a flat 1.1% for 2019 while the next three rates were all pushed 0.1 points lower to 1.2%, 1.4% and 1.6%.

As for real economic growth, the estimates were lowered by 0.1 points to 1.1%, 0.3 to 1% and 0.1 points to 1.3% through 2021 and the last one was left at 1.4%. The unemployment rate is projected to weaken from 7.6% to 7.4%, slightly less than in the July survey results.

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