ECB survey: the eurozone economy will decline by 5.5% in 2020

US, WASHINGTON (ORDO NEWS) — The eurozone economy in 2020 will shrink by 5.5% due to the consequences of the coronavirus pandemic, a survey of professional forecasters by the European Central Bank showed.

Next year, the eurozone economy is expected to grow by 4.3%, in 2022 growth will slow to 1.7%. The long-term forecast for GDP growth remained at 1.4%.

Inflation is projected to average 0.4% in 2020, and then accelerate to 1.2% in 2021 and 1.4% in 2022. The average long-term inflation forecast is maintained at 1.7%. The inflation target is set by the ECB at a level “slightly lower” 2%.

Unemployment in the eurozone is expected to reach 9.4% this year, 8.9% in 2021, and 8.4% in 2022. The average long-term unemployment forecast is increased by 0.4 percentage points to 7.7%.

A survey of professional forecasters was conducted from March 31 to April 7.

Last week, preliminary Eurostat data showed that Eurozone GDP declined 3.8% in Q1 compared with the previous three months. This is the sharpest quarterly decline since data collection began in 1995.

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