A regular survey of professional economic forecasters conducted by the European Central Bank showed that experts have downgraded their growth forecasts for the eurozone economy for both 2005 and 2006.
In its February monthly bulletin, the ECB said that in its regular quarterly "Survey of Professional Forecasters" the experts had revised downward their growth forecast for 2005 to 1.8 percent from 2.0 percent previously.
And the eurozone economy was expected to grow by 2.1 percent in 2006, instead of 2.2 percent as previously anticipated, the ECB said.
The downward revision was largely connected with the strength of the euro and high oil prices, the ECB explained.
"Forecasters have revised their exchange rate assumptions upwards and now expect the euro to remain strong for the rest of 2005," the ECB wrote.
Other reasons for the more subdued growth forecasts "were oil prices, which are expected to stay at a high level, and weaker world demand," the euro bank continued.
By: N. Peter Kramer
