Eurozone: Inflation, growth seen higher in next two years – ECB Survey

Eurozone growth and inflation are expected to be higher this year and in 2022, outpacing the previous projections, the European Central Bank's (ECB) Survey of Professional Forecasters showed on Friday.

Key takeaways

“Inflation in 2021 seen at 1.9% vs 1.6% predicted 3 months ago, 2022 forecast raised to 1.5% from 1.3%.”

“Longer-term or 2026 inflation projection lifted to 1.8% from 1.7%.”

“2021 growth projection raised to 4.7% from 4.2%, 2022 GDP growth seen at 4.6% vs 4.1%.”

Market reaction

Amidst the ECB survey and upbeat German and Eurozone PMI reports, EUR/USD is bouncing back towards 1.1800.

The spot was last seen trading at 1.1782, up 0.11% on the day.