LONDON (Reuters) - S&P Global said on Thursday it has lifted both its euro area economic growth and inflation forecasts for this year, but expected to inflation to fall back below its 2% target next year.
The ratings agency said that Europe's economic recovery since lockdown restrictions were lifted in March-April had been "surprisingly strong," leading it to raise its growth forecasts to 5.1% for the current year, from 4.4% previously.
In a note, S&P Global said it had also revised up its inflation forecast for this year to 2.2% from 1.8%.
"However, we continue to see inflation decelerating below the ECB's target next year on the back of subdued wage development and falling growth momentum," S&P said, referring to the European Central Bank's 2% inflation target.
(Reporting by Dhara Ranasinghe)