Date
21 November 2017
ECB president Mario Draghi is claiming credit for much of the eurozone's improved outlook. Photo: WSJ
ECB president Mario Draghi is claiming credit for much of the eurozone's improved outlook. Photo: WSJ

ECB lifts eurozone forecast as stimulus looms

The European Central Bank (ECB) has raised its economic forecast for this year and next ahead of a 1 trillion-euro (US$1.1 trillion) stimulus. 

The projections are a further sign of confidence that Europe is gaining strength after years of economic malaise, the World Street Journal reported Friday.

The stimulus comes as Europe appears to have turned a corner, although its recovery still lags far behind those in the United States and Britain.

The ECB boosted its eurozone forecasts from three months ago, saying it now expects 1.5 percent growth this year, 1.9 percent in 2016 and 2.1 percent in 2017.

It previously had predicted the currency bloc’s economy would grow 1 percent in 2015 and 1.5 percent in 2016.

ECB president Mario Draghi took credit for some of Europe’s improved growth outlook.

“The substantial additional easing of our monetary policy stance supports and reinforces the emergence of more favorable developments for the euro-area economy,” Draghi said Thursday. 

The eurozone “is never going to be a locomotive for the global economy, but at the least you hope it’s not going to act as a brake,” said Howard Archer, an economist at consultancy IHS Global Insight.

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