In the post meeting press conference, ECB President Christine Lagarde said, business and consumer surveys and high-frequency indicators point to a “sizeable improvement” in activity in Q2. Business surveys indicate a “strong recovery in services” while manufacturing production “remains robust”. Consumer confidence are “strengthening”, suggesting a strong rebound in private consumption in the period ahead. Business investments shows “resilience”.
According to the baseline scenario, ECB upgraded real GDP growth forecast in 2021 to 4.6% (up from 4.0%) , in 2022 to 4.7% (up from 4.1%). 2023 growth forecast was unchanged at 2.1%. Annual inflation is projected to be at 1.9% in 2021 (up from 1.5%), 1.5% in 2022 (up from 1.2%) and 1.4% in 2023 (unchanged).
