ECB Survey Signals Sharp Contraction In 2020

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Eurozone is set to contract sharply this year due to the coronavirus pandemic, the Survey of Professional Forecasters published by the European Central Bank showed Friday.

According to the respondents of the SPF survey, the economy will shrink 8.3 percent this year, instead of 5.5 percent fall estimated previously.

However, growth forecast of 2021 was revised up to 5.7 percent from 4.3 percent and that for 2022 to 2.4 percent from 1.7 percent.

The inflation outlook for 2020 was retained at 0.4 percent. Meanwhile, the projection for next year was lowered to 1 percent from 1.2 percent and the estimate for 2022 to 1.3 percent from 1.4 percent.

The survey showed that expectations for peak in unemployment rate were pushed back to 2021. The jobless rate for this year is seen at 9.1 percent instead of 9.4 percent. The unemployment rate is seen at 9.3 percent next year and 8.5 percent in 2022.

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