ECB cuts eurozone growth, inflation forecasts

Paris: The European Central Bank on Thursday cut its growth and inflation forecasts for the eurozone, noting the deteriorating economic outlook and price drops, its president Mario Draghi said.

The ECB now expects gross domestic product (GDP) to expand by 0.8 percent this year, 1.0 percent next year and 1.5 percent in 2016, against previous estimates of 0.9 percent, 1.6 percent and 1.9 percent respectively.

Inflation is expected to slow to 0.5 percent in 2014, 0.7 percent in 2015 and 1.3 percent in 2016, and could slow further due to the recent decline in oil prices, warned Draghi.