European Commission slashes euro area 2024 growth forecast
2024 GDP growth forecast seen at 0.8% (previously 1.2%)2025 GDP growth forecast seen at 1.5%2024 inflation forecast seen at 2.7%2025 inflation forecast seen at 2.2%In short, they are viewing softer growth and a further easing of inflation pressures. That being said, the 2025 forecast for inflation is still reflecting a projection above the ECB's 2% target. On the growth projections, the main drag remains the German economy. The commission sees Europe's largest economy only growing by 0.3% now compared to its previous 0.8% forecast in November last year. This article was written by Justin Low at www.forexlive.com.
- 2024 GDP growth forecast seen at 0.8% (previously 1.2%)
- 2025 GDP growth forecast seen at 1.5%
- 2024 inflation forecast seen at 2.7%
- 2025 inflation forecast seen at 2.2%
In short, they are viewing softer growth and a further easing of inflation pressures. That being said, the 2025 forecast for inflation is still reflecting a projection above the ECB's 2% target. On the growth projections, the main drag remains the German economy. The commission sees Europe's largest economy only growing by 0.3% now compared to its previous 0.8% forecast in November last year.
