Draghi: Inflation Projected to Pick Up at End of 2016

The video discusses the economic outlook for the euro area, highlighting moderate growth supported by domestic demand and effective monetary policy. Consumers benefit from low oil prices and better employment prospects, while investments rise due to higher corporate profits. GDP is projected to grow by 1.6% in 2016 and 1.7% in the following two years. Inflation remains low, influenced by oil prices and economic slack, but is expected to rise by 2018 as the economy recovers.

What factors are supporting the moderate but steady economic growth at the start of the year?

• High oil prices and low employment

• Solid domestic demand and effective monetary policy

• Decreased corporate profits and unfavorable financing conditions

• Weak consumer demand and high inflation

What is the expected increase in annual real GDP for the euro area in the next two years?

• 1.0% and 1.2%

• 2.0% and 2.2%

• 1.6% and 1.7%

• 1.8% and 2.0%

What is the current state of inflation dynamics in the euro area?

• Inflation is rapidly increasing

• Inflation is stable and high

• Inflation is slightly negative and expected to remain low

• Inflation is decreasing at a fast pace

Which factors are contributing to the subdued domestic price pressures?

• Strong consumer demand

• Rapid increase in oil prices

• Persistent economic slack and muted wage growth

• High wage growth and strong economic activity

By how much is inflation expected to increase by 2018?

• 1.6%

• 1.3%

• 2.0%

• 1.0%