The European Central Bank (ECB) yesterday revised upwards its economic growth and inflation forecasts for 2026 in the euro zone and kept its benchmark interest rate unchanged, claiming that the price increase remains close to 2.0 percent.
The issuing institute based in the German city of Frankfurt raised two tenths, to 1.2%, its economic growth forecast for the 20 countries of the common currency in 2026. For 2027 and 2028 it expects an expansion of 1.4 percent.
“It is estimated that the growth of the economy will be more vigorous than expected in the September projections, driven especially by domestic demand,” the institution commented in a statement, after its monetary policy meeting.
On the inflation side, it raised its forecast for next year by two tenths to 1.9%, and lowered the projection for 2027 by one tenth, to 1.8 percent. For 2028, it forecasts inflation of 2.0%, its medium-term objective.
Inflation in the euro zone remained stable in November, at 2.1% annually, according to the European statistics office Eurostat.
Christine Lagarde, president of the ECB, said that the turmoil on Europe’s borders, as well as the effects of trade tensions, make it impossible to issue guidance on the future.
“There is something that has not changed much and may have even gotten worse: uncertainty,” he said.
