Goldman Sachs Cuts Eurozone GDP Growth Forecast

The American bank Goldman Sachs lowered its GDP growth forecasts for the euro area countries. According to Goldman Sachs, eurozone GDP growth will be 0.7%. The bank previously forecast growth of 1%. About it informs financial times.

Goldman Sachs attributed the change in outlook to the difficult situation in the banking industry, which entails problems with lending, and this affects growth rates. In addition, a slowdown in raising interest rates is expected. Goldman Sachs estimates that the European Central Bank will raise interest rates by 25 basis points in May and then by the same amount again in June. The Bank of England, according to Goldman Sachs, “more likely than not” will raise rates by 25 basis points next week, but “it is not expected to raise rates in May.”

Alena Miklashevskaya