ECB revises 2013 forecast for eurozone; expects economy to contract

The European Central Bank, or ECB, on Thursday revised its 2013 forecast for the eurozone downward, with the area's economy now expected to contract 0.40 percent.

FP Archives|Dec 20, 2014, 16:30:50 IST

Frankfurt: The European Central Bank, or ECB, on Thursday revised its 2013 forecast for the eurozone downward, with the area's economy now expected to contract 0.40 percent.

The ECB's previous eurozone forecast, which was released in December, forecast a contraction in the eurozone's gross domestic product of 0.03 percent this year.

[caption id="attachment_653078" align="alignleft" width="380"] AFP

The ECB's December forecast called for inflation to stay in the range of 1.1 percent to 2.1 percent in 2013. AFP[/caption]

The countries that share the single European currency will grow about 1 percent in 2014, the ECB said.

The downward revision mainly reflects a greater negative impact from the contraction in GDP registered in the fourth quarter of 2012, the ECB said.

European Central Bank chief Mario Draghi said, however, that the forecast rate of recovery was holding.

India’s trade surplus with US may cross $90 billion after tariff cuts, says SBI report

Lower duties under the India–US trade deal could push exports past $100 billion annually and sharply widen the surplus, SBI analysis suggests.

1 min read

Inflation likely to be a big focus area for budget 2024, say sources

Retail inflation in India jumped in November and peaked three months later at 5.55 per cent, according to statistics released on December 12 by the National Statistics Office (NSO)

Explained: Will the Bank of Japan break tradition and raise interest rates?

Even as the Federal Reserve and the world’s other central banks raise interest rates to try to curb inflation, the Bank of Japan has stood firm, keeping its key interest rate at minus 0.1 per cent even as the yen sinks to three-decade lows against the dollar

UK enters recession, central bank admits

Bank of England’s Monetary Policy Committee released minutes of its meetings, which most recently included a warning about the UK economy entering or possibly even already being in a recession. Read more.

Explained: How the rising US dollar can affect everyone

The dollar is near its highest level in more than two decades against major currencies, including the euro and Japanese yen. Many professional investors don't expect it to ease off anytime soon

Up Next