A European Central Bank (ECB) survey of economists showed a cut in forecasts for euro zone 2004 growth to 1.6 per cent from 1.8 per cent, the ECB said today.
In its May monthly bulletin, the ECB said that in its regular quarterly "Survey of Professional Forecasters", economists had also cut their predictions for next year's growth to 2.1 per cent from 2.2 per cent.
The forecast for 2004 inflation remained unchanged at 1.8 per cent, although 2005 inflation figures have been raised from 1.7 per cent to 1.8 per cent.
The ECB said the main factors hindering growth prospects are the recent rise in commodity prices, exchange rate developments and uncertainty over structural reforms.
