economic situation
ECB expects less economic growth
The euro currency watchdogs are increasingly concerned about the economy in the currency area. Inflation is now rapidly approaching the central bank’s target.
The European Central Bank (ECB) is further reducing its expectations for economic growth in the euro area. According to the central bank, the economy in the euro area has grown less this year than expected three months ago. The ECB assumes that there will be an increase of only 0.7 percent for the whole of 2024. In September, the ECB had assumed economic growth of 0.8 percent, and in June it was even 0.9 percent.
For 2025, the ECB expects the gross domestic product (GDP) in the 20 countries of the currency area to increase by 1.1 percent (September forecast 1.3 percent), and the growth forecast for 2026 is also somewhat weaker at 1.4 percent.
According to the central bank, inflation in the euro area will fall somewhat faster than recently expected. The ECB expects an inflation rate of 2.4 percent for the current year; in September the ECB had predicted 2.5 percent. A rate of 2.1 percent is expected in 2025. For 2026, the ECB continues to expect an average increase in consumer prices in the euro area of 1.9 percent.
The ECB’s most important task is to ensure a stable euro and thus maintain people’s purchasing power. The central bank believes that its goal of stable prices has been achieved in the medium term with an inflation rate of 2.0 percent in the euro area.
ECB decisions December 12, 2024 Opening statement Lagarde October 17, 2024 Time series ECB key interest rates ECB forecasts on inflation and the economy Federal Statistical Office on inflation in Germany Eurostat on inflation in the euro area FMH financial advice: comparison of mortgage loans
dpa
Source: Stern
