ECB: Eurozone growth will continue to be poor, but inflation may go up.

Share This Post

According to Vice President Luis de Guindos of the European Central Bank, inflation may momentarily increase while the eurozone’s economic growth is expected to remain modest.The European Central Bank (ECB) predicts that inflation in the eurozone will rise in the upcoming months before slowing down once more. This is because rising energy and food costs are still a major source of uncertainty in the face of elevated geopolitical tensions and unfavorable weather conditions.

Luis de Guindos, vice president of the European Central Bank, made the remarks at the start of the 26th Frankfurt Euro Finance Week on Monday.Inflation in the Eurozone decreased in September and October, with the latter’s percentage standing at 2.9% based on Eurostat’s flash estimate.

“We expect a temporary rebound in inflation in the coming months as the base effects from the sharp increase in energy and food prices in autumn 2022 drop out of the year-on-year calculation,” de Guindos stated. “But we see the general disinflationary process continuing over the medium term.”The vice president made it clear that the European Central Bank’s (ECB) key interest rates will not be lowered anytime soon, meaning that borrowing costs for households and businesses will remain high for a considerable amount of time in order to decrease inflation to the target 2% rate.

“Today, inflation is significantly lower, but it is still expected to stay too high for too long,” he stated.

Inflation is only expected to return to target in late 2025, according to the ECB’s most recent prediction, with consumer price rise essentially stagnant at about 3% for the majority of 2024.According to the Financial Times, Christine Lagarde, the president of the European Central Bank, made remarks regarding the potential for key rate reductions a few days before. She stated that the ECB will not begin to cut rates for at least “the next couple of quarters.”

The International Monetary Fund (IMF), which has cautioned that the Middle East conflict may increase inflation in Europe, concurs with the hard stance against hasty rate cuts.The Eurozone might briefly enter a recession before picking up speed again.Prior to the most recent stop, the ECB raised interest rates ten times in a row, setting a record. High borrowing prices hindered the ability of firms in the eurozone to make investments and also had a detrimental effect on domestic demand.

Global economic growth is also decelerating in the interim.

“The growth outlook for the euro area economy has deteriorated further, as global growth momentum slows and tighter financing conditions are increasingly weighing on investment and consumer spending,” de Guindos stated.”Weaker industrial activity is spilling over to services,” he stated. “It is likely that the euro area economy will remain subdued in the near term.”

According to the most recent Eurostat data, the eurozone economy shrank by 0.1% in the three months ending in September. Should GDP remain negative for the final three months of the year, the single-currency region may formally enter a recession (a recession is typically defined as a decline in GDP over a string of consecutive quarters).

The European Central Bank (ECB) is hopeful that the economy will expand in the upcoming year, nevertheless.”It is likely that the euro area economy will remain subdued in the near term,” de Guidos stated. “However, it looks set to strengthen again over the medium term, as inflation falls further, household real incomes recover and the demand for euro area exports picks up.”

.M-J Global is the best visa agent in Dubai,Oman and Qatar and best immigration consultant in Oman,Dubai and Qatar.It is the most trusted immigration agency in middle east and the business migration agent in Oman,Dubai and Qatar.M-J Global is the best registered Immigration Agent in Dubai,Oman and Qater.




Watch our video

Skilled Immigration
M-J Global Team can help turn your dream into reality.Our team of Immigration Consultants can help you
Business Immigration
M-J Global team assisting various applicants for visit visa. As we do everythingwe can to ensure the achievement...
Visit Visa
M-J Global team assisting various applicants for visit visa. As we do everything we can to ensure the...
M-J Global Team- ``Your Education advisors`` Excited by the idea of studying Internationally...

Follow M-J Global

Frequently Read Topics
Why Study in Canada?
There are many reasons why more than 400,000 International Students chose to live and stud ... Read More
Why Did Canada Launch Express Entry?
Canada launched Express Entry in 2015 in order to move from a "first-come, first-served" i ... Read More
Who Qualifies for Canadian Permanent Residence/Skilled Worker Immigration?
On January 1, 2015, the Government of Canada implemented the Express Entry Immigration sys ... Read More
What is an Electronic Travel Authorization?
Foreign nationals from visa-exempt countries arriving in Canada by air are required to obt ... Read More
The Express Entry Job Bank
The Express Entry Job Bank is an online job site created by Employment and Social Developm ... Read More
Express Entry Candidate Pool
Once the Canadian government considers an applicant’s online Express Entry profile to be ... Read More
Study in Canada: Work After Graduation
There are many options available to you after you have completed your study in Canada prog ... Read More
Study in Canada: Internships and Co-Op Programs
If you’re looking to gain valuable international work experience while you attend school ... Read More
Requirements for the Federal Skilled Worker Program
In order to apply for skilled immigration under the Federal Skilled Worker program, an app ... Read More
Open Work permit in Canada – Work in Canada
An open work permit allows a foreign national to work for any Canadian employer he/she wan ... Read More
Nova Scotia ‘Study and Stay’
The Nova Scotia Study and Stay program specifically targets international students from Ch ... Read More
Labour Market Impact Assessments (LMIAs)
An LMIA is a document that an employer in Canada needs to obtain before hiring most types ... Read More
Invitations to Apply for Permanent Residence (ITAs)
Applicants who receive an Invitation to Apply (ITA) will become eligible to apply for perm ... Read More
Canada Inadmissibility for Individual Criminality: Definitions
Here you will find a description of the kinds of behaviour that can cause a person to be ... Read More
Federal Skilled Worker Program Eligible Occupations
Under Express Entry, Federal Skilled Workers across 347 eligible occupations who meet mini ... Read More
Express Entry Job Offer
While possessing a job offer is not mandatory for those seeking to immigrate using the Exp ... Read More
The Express Entry Candidate Pool
Once the Canadian government considers an applicant’s online Express Entry profile to be ... Read More
Eight Things to Know About Canada’s Start-Up Visa Program
Canada’s Start-Up Visa Program offers Canadian permanent residence to qualified immigran ... Read More
Comprehensive Ranking System (CRS)
All the skilled immigration applicants that are eligible for the Express Entry System will ... Read More
Citizenship Language Requirement
Applicants for citizenship between the ages of 18-54 must provide evidence of their knowle ... Read More
Canada Visit/Tourist Visa
A visitor is a person who wants to come to Canada to work, study or visit. A visitor is no ... Read More
Canada To End Special Temporary Foreign Worker Program Processing For Owner/Operators
Canada immigration authorities are moving to abolish the special Temporary Foreign Worker ... Read More
Buy a Business and Move to Canada Immigration Program
Canada immigration authorities have abolished the special Temporary Foreign Worker Program ... Read More

Get in touch

Would you like to speak to one of our immigration expert over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.



Get Free Consultation