FRANKFURT (Reuters) - Long-term euro zone inflation projections remain well anchored near the European Central Bank's target but GDP growth this year will be weaker than earlier thought, the ECB's Survey of Professional Forecasters showed on Friday.
Inflation, now running at zero, will rebound to 1.6 percent by 2018, then to 1.8 percent by 2020, in line with projections three months ago, the survey of 53 forecasters showed.
The figures indicate that the ECB has managed to shore up long-term expectation with its March stimulus package, despite sinking oil prices and sharply lower market-based inflation projections.
Inflation has missed the ECB's target of close to but below 2 percent for three straight years and the bank has been concerned that too many misses could erode faith in its ability to get price growth back to target.
Still, for 2016, inflation will be much lower than earlier thought, with the survey indicating a 0.3 percent reading, below the 0.7 percent seen earlier, the survey showed.
The GDP growth outlook has also deteriorated, with the survey predicting 1.5 percent expansion this year, below the 1.7 percent seen three months ago.
Still, that figure is slightly ahead of the ECB staff's 1.4 percent forecasts.
For the complete survey, please click on: http://www.ecb.europa.eu/stats/prices/indic/forecast/html/index.en.html