The ECB revises up slightly its growth forecast for 2016 but – Boursier.com

The GDP of the euro area should show an increase of 1.6% instead of 1.4% previously. The organization also slightly raised its inflation forecast …

(Boursier.com) – At the meeting of its Monetary Policy Committee, the ECB has slightly revised upward its growth forecast for the euro area in 2016.

1.6% in 2016

the Central Bank is now targeting a GDP increase of 1.6% instead of 1.4% previously. For 2017, it remains unchanged at + 1.7%. For comparison, the European Commission table for his part on an expansion of 1.6% this year and 1.8% next year.

“The economic recovery in the euro area continues to be held back by weak growth prospects in emerging markets, the necessary balance sheet adjustments (…) and the slow pace of implementation of structural reforms “, however, said the president of the ECB, Mario Draghi.

inflation remains low

The institution of Frankfurt has also raised its inflation forecast to 0.2%, against 0.1% estimated in March. A rate remains well below the target set by the ECB at 2%. Nevertheless, the institution decided to leave rates unchanged.

“An additional stimulation (…) is expected monetary policy measures yet to be implemented and that will help rebalance more the risks surrounding the outlook for growth, “argues Mario Draghi. In March, the ECB expanded its monetary easing …

 M.D. with Reuters – © 2016 Boursier.com