Europe 1 with AFP 3:16 p.m., September 8, 2022
The European Central Bank has revised up its GDP growth forecast for the euro zone for 2022, but drastically slashed it for 2023. For 2024, the ECB expects GDP to rise by 1.9%, against 2, 1% previously.
Forecasts that occur in a context of energy crisis.
The European Central Bank on Thursday raised its GDP growth forecast for the euro zone for 2022, but drastically reduced it for 2023, amid an energy crisis stemming from the war in Ukraine.
The monetary institution expects economic activity to "stagnate" in late 2022 and early 2023, it said in a statement.
Inflation at 8.1% in the euro zone
It now expects growth of 3.1% this year, but only 0.9% in 2023, compared to 2.8% and 2.1% respectively forecast in its June projections.
For 2024, the ECB expects GDP to rise by 1.9%, against 2.1% previously.
"Very high energy prices are reducing consumers' purchasing power", detailed the ECB after a monetary policy meeting, where the guardians of the euro decided on a historic increase in rate of 0.75 points to combat galloping inflation.
Driven by energy, it should reach 8.1% in the euro zone this year, against 6.8% expected in June.
"Harmful geopolitical environment"
It should remain above the 2% target also in 2023 and 2024. "Even if the supply bottlenecks are reducing, they continue to constrain economic activity", added the BCE in reference to shortages and difficulties in global supply chains.
In addition, "the harmful geopolitical environment, with in particular the unjustified aggression of Russia against Ukraine, weighs on confidence", she added.