Growth and Inflation projections for the euro area. Growth lower in 2022/Inflation higher

The ECB in December 2021 forecasted for:

• GDP to grow by 4.2% in 2022 and 2.9% in 2023. That was down from 4.6% and 2.1% in their September 2021 forecast
• HICP to rise by 3.2% in 2022 and 1.8% in 2023. That was up from 1.7% and 1.5% in their September 2021 forecast.

Below are those forecasts from December.

In the current quarter they now see:

• 2022 growth seen at 3.7% versus 4.2% in December
• 2023 growth seen at 2.8% versus 2.9% in December
• 2024 growth seen at 1.6% versus 1.6% December

For inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term,:

• 2022 HICP seen at 5.1% versus 3.2% December. Big jump in inflation!
• 2023 HICP seen at 2.1% versus 1.8% December. See inflation moderating.
• 2024 HICP seen at 1.9% versus 1.8%

More specific comments on inflation

• Inflation excluding food and energy to average 2.6% in 2022
• longer-term inflation expectations have will anchored at target
• counsel sees it as increasingly likely that inflation will stabilize at target
• in all the alternatives scenarios about war economic activity could be dampened significantly
• inflation could be is considerably higher in the near-term
• in all scenarios inflation still expected to decrease progressively

Below are the details for GDP and inflation forecasts (CLICK HERE for the FULL REPORT):