ECB lowers 2005, 2006 growth forecasts

ECB lowers 2005, 2006 growth forecasts

The European Central Bank (ECB) revised its 2005 and 2006 forecasts for the Euro zone's economic growth downwards. The average growth forecast for 2005 was cut to 1.8% from 2%, while predictions for 2006 were reduced to 2.1% from 2.2%. The Euro's appreciation against the US Dollar is one of the main reasons behind the ECB's readjustments. The Euro is expected to remain strong throughout 2005. High oil prices and weak global demand also contributed to the decline in the forecasts.