Ezb survey: economic pessimism on the rise

Ezb survey: economic pessimism on the rise

According to the survey, the euro zone economy will shrink by 0.5 percent this year. Previously, experts had expected a minus of 0.3 points. Experts are also more pessimistic about the coming year than before: in 2013, they expect only a slight increase in economic output of 0.3 percent, compared with 0.6 percent previously. In the long term, however, growth is expected to remain unchanged at 1.8 percent.

Inflation in the region is forecast to be 2.5 percent in 2012. This is 0.2 percentage points more than before. In 2013, the inflation was allowed to decrease to 1.9 (previously 1.7) percent. In the long term, the experts see a rate of 2.0 percent.

The ECB itself also expects inflation to remain above its target of just under two percent for some time to come. However, it is expected to fall below this mark in the course of the coming year.

The german member of the ECB executive board jorg asmussen underlined on thursday that he sees no dangers for price stability in germany and the eurozone. Inflation concerns are currently being raised in connection with the ECB’s bond-buying program and with a view to the very low interest rate, said asmussen, according to the text of his speech at the insurance day in berlin: "i assure you: these concerns are unfounded."There can be no talk of inflation or devaluation of the currency.

The ECB surveys experts from financial institutions and research institutes every three months. The latest survey was conducted by the 16. Until 22. Conducted in october.