The Eurozone economic growth forecasts have been revised downward.

The participants of the European Central Bank's (ECB) Professional Forecasters Survey have revised their economic growth expectations for the Eurozone downward for the coming year. The ECB announced the results of the Professional Forecasters Survey for the fourth quarter of 2024. Accordingly, the annual harmonized inflation in the Eurozone was reported to be 2.4% for this year, and 1.9% for the years 2025 and 2026. Compared to the survey results for the third quarter, there was no change in the inflation forecast for the last quarter, while a downward revision of 0.1 points in the forecast for the next year drew attention.

GROWTH FORECASTS LOWERED

The average long-term inflation forecasts in the survey remained unchanged at 2%. The GDP growth forecasts for the Eurozone for 2024, 2025, and 2026 were set at 0.7%, 1.2%, and 1.4%, respectively. In the latest survey, a downward revision of 0.1 points was observed in the growth forecast for 2025 compared to the previous survey. The ECB's announcement indicated that the main reason for this revision was the expectation of weaker growth in the second half of this year, which is expected to have a dampening effect next year.

INFLATION INCREASE EXPECTED

The average long-term GDP growth forecast remained unchanged at 1.3%. The average unemployment rate forecasts were set at 6.5% for 2024 and 2025. It is anticipated that the average unemployment rate will decrease to 6.4% in 2026 and remain at this level in the long term. The ECB's Professional Forecasters Survey was conducted from October 1-3, with 56 professionals participating in the research. The forecasts of economists are closely monitored by monetary policymakers and are seen as an important factor in the formulation of monetary policy. The ECB Governing Council expects inflation, which was 1.7% in the Eurozone in September, to rise in the coming months.