13.12.201809:27:00UTC+00ECB Cuts 2019 Eurozone Growth & Inflation Outlook

The European Central Bank President Mario Draghi unveiled the latest set of ECB Staff macroeconomic projections for Eurozone on Thursday that revealed a further downgrade to the growth projection for next year.

The euro area growth forecast for next year was trimmed to 1.7 percent from 1.8 percent. The outlook for this year was cut to 1.9 percent from 2 percent. The growth projection for 2020 was left unchanged at 1.7 percent and the bank forecast 1.5 percent expansion for 2021. "The risks surrounding the euro area growth outlook can still be assessed as broadly balanced," Draghi said.

"However, the balance of risks is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility."

The inflation forecast for next year was lowered to 1.6 percent from 1.7 percent. The projection for this year was cut to 1.8 percent from 1.7 percent. The inflation outlook for 2020 was left unchanged at 1.7 percent and the bank projected 1.8 percent price growth for 2021.