ECB’s SPF lowered GDP forecasts

According to the last Q2 2016 ECB Survey of Professional Forecasters (SPF), inflation expectations in the euro region remain anchored at 1.8% in the longer run, while the broader measure of consumer prices – HICP - is now seen at 0.3% in 2016 and 1.3% in 2017, from 0.1% and 1.4%, respectively.

Regarding GDP, the SPF now expects the economy of the bloc to expand at an annual pace of 1.5% in 2016 (from 1.7%) and 1.6% in 2017 (from 1.8%), while GDP growth stayed unchanged in the long-term horizon at 1.7%.

On the unemployment issue, the SPF has revised lower their Q1 projections and it now sees the jobless rate to tick lower to 10.1 during the current year and 9.7% next year, from 10.3 and 9.9, respectively.