The euro zone will avoid a recession this year and growth will pick up noticeably after bottoming out in the second quarter, a European Central Bank (ECB) survey showed on Monday.
The 19-nation currency bloc has been hit by the fallout from the Russian invasion of Ukraine, which has undermined confidence, investment and household purchasing power through much higher fuel and food prices.
The economy is now expected to grow 0.1% in the second quarter, accelerating to 0.4% in both the third and fourth quarters, the ECB’s Survey of Monetary Analysts showed.
The survey, a major source of ECB deliberations, also predicts that the ECB will raise the deposit rate by a total of 0.75 percentage points this year and 1.50 points by the end of next year, with the rate reaching a peak. of 1.25% in mid-2024.
The research, presented to monetary policymakers at last week’s ECB meeting, was compiled before the bank said rates would rise by 0.25 points in July and possibly by a wider margin in September.
The ECB has been trying to fight inflation, which is expected to return to the 2% target by the first quarter of 2024, according to the survey.
Source: CNN Brasil
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