The European Central Bank (ECB) lowered its eurozone GDP growth rate forecast from two percent to 1.9 percent in 2018 and from 1.8 percent to 1.7 percent in 2019, ECB President Mario Draghi said Thursday.
MOSCOW (Pakistan Point News / Sputnik - 13th December, 2018) The European Central Bank (ECB) lowered its eurozone GDP growth rate forecast from two percent to 1.9 percent in 2018 and from 1.8 percent to 1.7 percent in 2019, ECB President Mario Draghi said Thursday."This assessment is broadly reflected in the December 2018 Eurosystem staff macroeconomic projections for the euro area. These projections foresee annual real GDP increasing by 1.9% in 2018, 1.7% in 2019, 1.7% in 2020 and 1.5% in 2021. Compared with the September 2018 ECB staff macroeconomic projections, the outlook for real GDP growth has been revised slightly down in 2018 and 2019," Draghi said at a press conference, as quoted in a published statement.
According to Draghi, the eurozone inflation rate forecast was slightly increased from 1.7 percent to 1.8 percent for 2018, but for 2019 it was improved from 1.7 percent to 1.6 percent. The forecast remains unchanged for 2020 with inflation rate standing at 1.7 percent. In 2021, it is expected to be 1.8 percent.
Draghi noted that the recent changes to the forecast stem from increased risks related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility.
The eurozone is the monetary union of EU member states that use the euro as their Currency. It comprises Austria, Belgium, Cyprus, Germany, Estonia, Finland, France, Greece, Ireland, Italy, Spain, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia and Slovenia.
