A Bloomberg poll of analysts shows that the euro-area economy is expected to grow faster than previously anticipated this year. With Germany, the bloc’s largest member, emerging from over a year of near-stagnation, it is predicted that output in the 20-nation currency union will increase by 0.7% in 2024, which is higher than the 0.5% forecast in the last survey.
According to the results of the poll, France, Italy, and Spain also have improved outlooks, reflecting a more positive sentiment in the region. Positive first-quarter GDP readings and decreasing inflation towards 2% are contributing to this optimism. Additionally, the European Central Bank is preparing to lower interest rates, with respondents in the survey predicting three quarter-point reductions this year in the deposit rate, which currently stands at 4%.
ECB President Christine Lagarde has stated that the euro zone economy is showing signs of recovery, further supporting the upbeat outlook. Overall, the survey indicates a more positive trajectory for the euro-area economy in the coming year.
