ECB Economic Bulletin: Gradual Recovery of Euro Area Economy Expected in 2024
21 March 2024
By Aurėja Bobelytė – VILNIUS (Econostream) – The economy remains weak, but a gradual recovery is expected in 2024, according to the European Central Bank's latest Economic Bulletin, published Thursday.
‘As inflation falls and wages continue to grow, real incomes will rebound, supporting growth’, the ECB said.
The ECB observed that demand for euro area exports should pick up, as the dampening effect of past interest rate increases will fade, and added that ‘export growth is expected to catch up with strengthening foreign demand.’
It was noted that the gradually fading impact of the ECB’s monetary policy tightening was a further contributing factor for economic recovery.
‘The EU’s revised economic governance framework should be implemented without delay’, the ECB said.