Eurozone economic growth expectations for next 12 months -1.2%: ECB

Median inflation expectations for the next 12 months and for three years ahead remained unchanged at 2.6 per cent and 2.4 per cent respectively.

Expectations for nominal income growth over the next 12 months increased to 1 per cent in February from 0.9 per cent in January, while expectations for spending growth over the next 12 months decreased.

Expectations for economic growth over the next 12 months became more negative, standing at minus 1.2 per cent compared with minus 1.1 per cent in January, but still above the December 2024 value of minus 1.3 per cent, while the expected unemployment rate in 12 months’ time increased to 10.5 per cent, the same as in December 2024 and from 10.4 per cent in January.

Inflation expectations at the one-year and three-year horizons thus remained below the perceived past inflation rate, an ECB release said.

Uncertainty about inflation expectations over the next 12 months decreased slightly in February to its lowest level since January 2022.

Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate (10 per cent), implying a broadly stable labour market.

Expectations for both economic growth and the unemployment rate remained broadly stable in the previous four months, fluctuating within a narrow range.

ALCHEMPro News Desk (DS)