ECB Vice President Luis de Guindos, in an interview with Die Zeit, offered indicated that the growth forecast for the region, previously set at 0.8% for this year, might fall short of expectations.
De Guindos highlighted several factors contributing to this revised outlook, saying, “The prospects have even deteriorated.” He pointed out the key issues impacting the forecast: a slowdown in world trade, heightened geopolitical uncertainties, and the more rapid than anticipated impact of ECB’s interest rate hikes on the economy.
De Guindos also touched upon inflation trends, noting a shift from previous projections. The December projections had inflation returning to the 2% target by the second half of 2025. However, recent data suggest a more optimistic scenario.
De Guindos observed, “But inflation figures have mostly brought positive surprises recently.” He further speculated that inflation might settle “slightly lower” than their predictions.
Full interview of de Guindos here.
