The European Central Bank on Thursday significantly raised its GDP growth forecast in the euro area for 2021 and 2022, reflecting a rebound in the economy faster than expected with the decline of the pandemic.
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The Monetary Institute forecasts growth of 4.6% in 2021 and 4.7% in 2022, more than the 4.0% and 4.1% forecast in the latest set of projections released in March.
For 2023, ECB economists still expect growth of 2.1%.
Rising inflation
The ECB has also raised its inflation forecasts in the euro zone to 1.9% in 2021 and 1.5% in 2022, due to “
temporary
”
factors
linked to the economic recovery and the rise in energy prices. . For 2023, the forecasts remain unchanged at 1.4%, said the president of the institution Christine Lagarde. Previous March estimates pointed to inflation expected at 1.5% in 2021, 1.2% in 2022, and 1.4% in 2023.
