Eurozone Growth Forecast Increased

Eurozone Growth Forecast Increased

6 Mar , 2015

There is good news coming out of Europe for a change as The European Central Bank has raised this year’s growth forecast for the Eurozone.

The growth forecast has grown from 1% to 1.5% for the year ahead. The ECB has also said that it will begin its quantitative easing programme next week that was first promised in January.

Mario Draghi, the boss at the ECB, remains positive about the growth as figures at the end of 2014 were boosted by rapid growth in Germany and finished higher than expected. He has suggested that growth within the eurozone would reach 2.1% by 2017. Mr. Draghi also said that there will be a period of low negative inflation in the months ahead before prices begin to rise later in the year.

The QE program will inject at least €1.1 trillion (£834bn) into the eurozone economy by purchasing €60bn of assets a month from next week until September 2016, Mr Draghi added. There is a chance that the program will continue past that date.

The news was not all positive. Mr. Draghi also stated that high unemployment and low growth in certain areas of the eurozone meant that there was no room for complacency.

Related News:

Euro Zone | Reuters.com

NEW YORK - The euro fell to an 11-1/2-year low against the dollar on Thursday as U.S. and euro zone bond prices rose, after the European Central Bank ...