Amid the effects of the war in Ukraine and the pandemic, the European Central Bank (ECB) significantly cut forecasts for eurozone gross domestic product (GDP) growth this year and next, and estimated that inflation will stay above of the 2% target by at least 2024.
According to a statement with a monetary policy decision, in which interest rates were maintained, the team of the so-called ECB Eurosystem reduced the forecast for GDP expansion in the region in 2022, from 3.7% to 2.8%, and in 2023, from 2.8% to 2.1%. For 2024, the expectation of advancement was high, from 1.6% to 2.1%.
The monetary authority also began to expect a much more acute scenario of escalating inflation.
The ECB raised its forecast for the annual rate of inflation this year (from 5.1% to 6.8%), next year (from 2.1% to 3.5%) and in 2024 (from 1.9% to 2.1%).
The comparisons are in relation to the institution’s previous forecasts, released in March.
Excluding the volatile energy and food components, inflation is expected to reach 3.3% in 2022, before moderating to 2.8% in 2023 and 2.3% in 2024.
Source: CNN Brasil
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