Brussels, 12/12/2002 (Agence Europe) - On Thursday, the European Central Bank (ECB) announced that it would be revising its economic growth forecasts for Euro-zone countries in 2002, downwards. It is now only forecasting an increase of 1% in GDP compared with the growth band of between 0.9%-1.5% it forecast six months ago. For 2003, its forecast has been reduced from 2.1%-3.1% to 1.1%-2.1%.
The ECB report for December indicate that element reveal that inflationary pressures have been dissipated, particularly given the effect of sluggish economic growth, which, nonetheless, is fairly optimistic about perspectives in 2003 and beyond. The report also that it was likely that there would be a gradual upturn in growth in 2003 and that the decline in inflation would increase real available income and help individual consumption. The Bank also considers that exports should pick up and help investment. In 2004 the ECB is counting on a speeding up in growth at a rate of 1.9%-2.9%.
Taking into account the difficulties that characterise the current context, the President of the Central bank indicated on Thursday on German radio that the Stability Pact in the Euro-zone should not be modified. Wim Duisenberg declared that changing the rules during a difficult stage was definitely not on.