Euro zone 2004&2005 growth forecasts reduced
Economists taking part in the European Central Bank's Survey of Professional Forecasters reduced their forecasts for Euro zone 2004 growth to 1.6% from 1.8% and 2005 growth to 2.1% from 2.2%. The expectations for 2004 inflation remained unchanged at 1.8% level, but 2005 inflation is raised to 1.8% from 1.7%. The downward in 2004 and 2005 growth forecasts is attributed to the recent rises in commodity prices, past exchange rate developments, subdued domestic demand and uncertainty relating to structural reforms.