The European Central Bank on Thursday cut Eurozone inflation projections from its previous estimate in December 2022. Inflation is now expected to average 5.3% in 2023, 2.9% in 2024 and 2.1% in 2025, down from previous respective estimates of 6.3%, 3.4% and 2.3%.
"The baseline projections for growth in 2023 have been revised up to an average of 1.0% as a result of both the decline in energy prices and the economy's greater resilience to the challenging international environment," the ECB said, noting that GDP growth is set to reach 1.6% in both 2024 and 2025. In December 2022, the central bank had expected economic expansion of 0.5% in 2023, 1.9% in 2024 and 1.8% in 2025.
