MILAN, March 27 (Reuters) - Rating agency S&P Global cut
on Monday its 2024 euro zone growth forecast to 1.0% from 1.4%
citing headwinds from sticky inflation forcing the European
Central Bank to raise rates for longer than expected.
"Headline inflation will not return to target before
first-quarter 2025, and core inflation before third-quarter
2025," it said in a statement. "The near-term outlook for the
eurozone economy appears complicated. A restrictive monetary
policy will transmit to domestic demand, while interest rates
should turn positive in real terms in 2024".
S&P also raised its 2023 growth forecast to 0.3% from zero.
The agency said this was not "akin to stronger demand". The
scenario for 2023 is one of stagnation, S&P said.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter ))
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