Forex News

ECB: Analysts cut inflation forecasts in the eurozone for 2019, 2020

According to a study by professional forecasters published by the European Central Bank on Friday, inflation in the next two years in the euro area will increase more slowly than previously forecast. Forecasters kept their inflation expectations for 2018 at 1.5 percent. Forecasts for 2019 and 2020 were reduced to 1.6 and 1.7 percent, compared to the previous forecast of 1.7 and 1.8 percent, respectively. Long-term inflation expectations remained stable at 1.9 percent. The real expectations of GDP growth for 2018 and 2019 were revised upwards, to 2.4 and 2.0 percent. This represents a downward revision from 2.3% to 1.9%, projected in January, respectively. Forecast growth for 2020 was reduced from 1.7 percent to 1.6 percent. The expected unemployment rates for 2018 and 2020 were revised downward to 8.3 and 7.5 percent, respectively. In a study conducted in the first quarter, analysts had forecasted rates of 8.4 percent for 2018 and 7.6 percent for 2020. In 2019, the expected unemployment rate remained unchanged at 7.9 percent. The study of professional forecasters was conducted from 4 to 10 April.