The ECB downgraded the forecast for the growth of the eurozone economy

ECB Deputy Head Luis de Guindos Jurado noted that the situation related to Ukraine would have a negative impact on the European economy. Inflation is expected to remain high for a longer period of time. Prior to the start of the military operation of the Russian Federation in Ukraine, the bank predicted an increase in GDP by 4% this year. Now this forecast has been lowered to 2%. At the same time, Luis de Guindos Jurado assured that there would be no stagflation. The head of the ECB, Christine Lagarde, expressed her point of view on the prospects for the European economy. She said 2021 could end with a gross domestic product growth of 3.7%. In the next two years, the eurozone economy may show growth of 2.8% and 1.6%. As for inflation, the forecast for this indicator was increased significantly. Now the ECB expects that by the end of the year it will be 5.5%. In 2023, the price growth rate will slow down to 2.1%, and in 2024 inflation will decrease to 1.9%. However, the forecast for key economic indicators may be revised depending on how the situation in Ukraine develops.

Source: xCritical.com