Central bank sees more weakness ahead as it pushes up rates to tackle inflation
The headquarters of the European Central Bank (ECB) are pictured in Frankfurt in western Germany. The central bank for the 19-country euro zone on Thursday raised its benchmark interest rate by another half percentage point. (AFP Photo)
FRANKFURT: The euro zone economy may contract in the last quarter of this year and the first quarter of next year because of high energy prices, but it should still manage weak growth in 2023, the European Central Bank (ECB) said on Thursday.
Gross domestic product would inch up by 0.5% for 2023, the bank projected, down from its previous forecast of 0.9%. Stronger growth of 1.9% should then be achieved for 2024, it said.
The ECB also…
