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Eurozone inflation is expected to rise slower than previously projected in the next two years, while growth is seen stronger, according to the Survey of Professional Forecasters published by the European Central Bank on Friday.
Forecasters maintained their inflation expectations for 2018 at 1.5 percent. For 2019 and 2020, projections were cut to 1.6 percent and 1.7 percent, from previous outlook of 1.7 percent and 1.8 percent, respectively.
The longer-term inflation expectations remained stable at 1.9 percent. Real GDP growth expectations were revised upwards for 2018 and 2019, to 2.4 percent and 2.0 percent. This represents downward revision from 2.3 percent and 1.9 percent, respectively projected in January survey. Projections for growth were lowered to 1.6 percent from 1.7 percent for 2020.
Unemployment rate expectations were revised downwards to 8.3 percent and 7.5 percent for 2018 and 2020, respectively. In the first quarter survey, forecasters projected 8.4 percent for 2018 and 7.6 percent for 2020. For 2019, unemployment rate expectations were unchanged at 7.9 percent.
The Survey of Professional Forecasters were conducted between April 4 and 10.