ECB upgrades its forecast for GDP growth in eurozone

The European Central Bank (ECB) has significantly raised its forecast for GDP growth in the eurozone- up to 4.6% for the current year and up to 4.7% next year.

Report informs that the head of the regulator, Christine Lagarde made the statement at a press conference.

"Annual real GDP growth is expected to be 4.6% in 2021, 4.7% in 2022, and 2.1% in 2023," Lagarde said, quoting from the ECB's June baseline forecast. In March, the growth was expected at 4%, 4.1%, and 2.1%, respectively.

In addition, the ECB raised its forecast for inflation in the eurozone to 1.9% for the current year from the previous 1.5%.

"Annual inflation is expected to be 1.9% this year, 1.5% in 2022, and 1.4% in 2023," she said.

In March, the expected figures were 1.5%, 1.2% and 1.4%, respectively.

The inflation target for the ECB is just below 2%. "Inflation will be below our target on the forecast horizon," Lagarde said.