ECB’s SPF cut its GDP forecast for 2017

The latest ECB’s Survey of Professional Forecasters (SPF) for the third quarter showed the real GDP growth is now expected at 1.5% for the current year, 1.4% in 2017 and 1.6% in 2018 from previous data at 1.5%, 1.6% and 1.7%, respectively.

Regarding inflation and tracked by the broader HICP, forecasters now see consumer prices rising on an annualized 0.3% in 2016, 1.2% next year and 1.5% in 2018 vs. 0.3%, 1.3% and 1.6%, respectively from Q2 forecasts.

Additionally, the SPF now expects the unemployment rate to grind lower from 10.1% in 2016 to 9.7% in 2017 and 9.4% during 2018 from Q2’s forecasts at 10.1%, 9.7% and 9.3%, respectively.