ECB lowers Eurozone 2022 GDP projection, raises inflation forecast
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Amid several crises facing Europe, the European Central Bank increased its GDP projections for the Eurozone and doubled its inflation forecast for the region.
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European Central Bank President Christine Lagarde in Brussels, Belgium February 6, 2020 (Reuters)
The European Central Bank has lowered the eurozone's GDP projection for 2022 to 4.2% and hiked the projection for 2023 to 2.9%.
Concurrently, the ECB raised inflation projection in contrast with September's forecasts, President Christine Lagarde said Thursday.
"Our Eurosystem [and ECB] staff projections for the annual real GDP growth at 5,1% in 2021, 4,2% in 2022, 2,9% in 2023 and 1,6% in 2024, compared with our September staff projection the outlook has been revised down for 2022 and up for 2023," Lagarde told a press conference.
President @Lagarde on inflation pic.twitter.com/6qXzjHgOJl
— European Central Bank (@ecb) December 16, 2021
President Lagarde also said that the re-introduced containment measures of some EU countries could delay the recovery, especially in travel, tourism, hospitality, and entertainment.
"Our new staff projections foresee annual inflation at 2,6% in 2021, 3,2% in 2022, 1,8% in 2023, and 1,8% in 2024, significantly higher than in the previous projections in September," Lagarde added.
In the previous September forecast, the regulator expected inflation at 2.2% in 2021, 1.7% in 2022, and 1.5% in 2023.
