The European Central Bank reiterated on Tuesday that the short-term growth outlook for the Eurozone remains weaker than in the United States, with the bloc expecting a slight contraction in the fourth quarter of 2022 and the first quarter of this year.
In a report published on its website, the ECB confirmed the US economy will narrowly avoid a recession in the coming months. However, the annual inflation rate expectations for two years ahead stood higher in the US than in the euro area. "These results suggest that levels of inflation above the central bank target are seen to be somewhat more persistent in the United States," the data concluded.
Eurozone inflation dropped for the second consecutive month in December to 9.2%. The December data for the US is coming out on Thursday, with markets projecting another decline that would put the reading at 6.5%.
