ECB Forecast: Modest Growth for Euro Area Amid Energy Crisis



According to the latest release of the European Central Bank Survey of Professional Forecasters, the GDP forecast for Euro Area for year 2023 remains unchanged at 0.2% while the forecast for year 2024 remained at 1.4%. These forecasts are consistent with the previous release by the same source. Compared to other sources, the International Monetary Fund (IMF) projected a slightly higher GDP growth rate for Euro Area in their World Economic Outlook released in October 2022. The IMF forecasted a 0.5% growth rate for Euro Area in 2023, which is higher than the ECB Survey of Professional Forecasters' projection. However, the IMF projection for 2024, which is 1.6%, is consistent with the ECB's survey. Overall, the latest forecast from the ECB suggests that the Eurozone is expected to see only modest growth in the next two years. However, it is important to keep in mind that economic projections are subject to a high degree of uncertainty and are subject to change based on numerous factors such as global economic activity, geopolitical tensions, and policy decisions.