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S&P Global lifts euro zone growth, inflation forecasts

Pandemic measures cast pall on euro zone investor morale
Pandemic measures cast pall on euro zone investor morale   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">LONDON</span> – S&P Global said on Thursday it has lifted both its euro area economic growth and inflation forecasts for this year, but expected to inflation to fall back below its 2% target next year. </p> <p>The ratings agency said that Europe’s economic recovery since lockdown restrictions were lifted in March-April had been “surprisingly strong,” leading it to raise its growth forecasts to 5.1% for the current year, from 4.4% previously. </p> <p>In a note, S&P Global said it had also revised up its inflation forecast for this year to 2.2% from 1.8%.</p> <p>“However, we continue to see inflation decelerating below the <span class="caps">ECB</span>’s target next year on the back of subdued wage development and falling growth momentum,” S&P said, referring to the European Central Bank’s 2% inflation target.</p> <p/> </div>