Europe flag and money

The long-term economic forecast for the Euro Area has dimmed a bit, according to the latest survey of economists by the European Central Bank (ECB).

The ECB reported that expectations for real GDP growth in 2024 and 2025 were down in its poll of professional forecasters for the third quarter.

In the short-term — from mid-2023 through the first quarter of 2024 — the survey signalled “modest, but constant” economic growth, the central bank reported.

Yet, longer-term GDP growth expectations were revised down slightly to 1.3%.

The economists’ inflation forecasts were little changed overall, but the ECB noted that expectations for food and energy prices have been revised down, whereas core inflation (excluding food and energy) expectations are facing upward revisions due to upside growth surprises and wage growth trends.

“Headline inflation was expected to decline from 5.5% in 2023 to 2.7% in 2024 and 2.2% in 2025,” it reported.

Longer-term inflation expectations were unchanged at 2.1%, it noted.