Euro zone growth and inflation could be higher this year and next than earlier predicted, the European Central Bank’s Survey of Professional Forecasters showed on Friday.
Inflation, targeted at 2% by the ECB, could hit 1.9% this year, above the 1.6% predicted three months ago while 2022 inflation is now seen at 1.5% as against 1.3%.
Although the increase in projections may be seen as a positive for the ECB, which has undershot its target for the past decade, the new survey forecast are in line with the bank’s own estimates and do not suggest any upside compared to what the ECB already predicted.
The longer term of 2026 inflation projection was raised to 1.8% from 1.7%.
In terms of growth, the survey now sees GDP expanding by 4.7% this year and 4.6% next year, upgrades compared to previous projections but broadly in line with estimates from the ECB’s own staff.