ECB revises 2016 growth up but trims forecast for 2017, 2018: Draghi

[FRANKFURT] The European Central Bank on Thursday raised its 2016 growth forecast slightly but lowered its projections for 2017 and 2018, with bank chief Mario Draghi saying "uncertainties" caused by the Brexit vote would weigh on trade.

The ECB now expects gross domestic product to grow by 1.7 per cent in 2016, up from a previous projection of 1.6 per cent, Mr Draghi said.

The euro economy should expand by 1.6 per cent in each of the following two years, he added, down from the earlier 1.7 per cent forecasts for 2017 and 2018.

Inflation expectations remain broadly unchanged, at 0.2 per cent for 2016, 1.2 per cent for 2017 and 1.6 per cent for 2018, Mr Draghi said.

AFP