ECB cuts growth forecast, holds inflation projection

0 Comments | AFP, September, 2007

FRANKFURT (AFP) — The European Central Bank on Thursday trimmed its 2007 eurozone growth forecast against a backdrop of instability on global markets but maintained its outlook for next year.

The ECB now estimates the massive economy -- which includes Germany, France, Italy and Spain -- will grow by 2.5 percent this year, compared with a previous forecast of 2.6 percent, and that it will expand by 2.3 percent next year, unchanged from its previous outlook.

The guardian of the euro also said it had maintained its estimations of eurozone inflation for this year and next at 2.0 percent.

For the first time, the estimations included data for Cyprus and Malta, which are expected to expand the eurozone to 15 nations on January 1 next year.

ECB president...