ECB cuts inflation and growth forecasts

    FRANKFURT, Sept 12 (Reuters) - The European Central Bank cut
inflation forecasts for the next three years and its growth
projections for 2019 and 2020 on Thursday, providing a key
justification for a fresh stimulus package announced earlier in
the day.
    ECB President Mario Draghi told a news conference that risks
to the euro area economy remain tilted to the downside, due to
geopolitical uncertainty, the rising threat of protectionism and
vulnerabilities in emerging markets.
    With a global trade war weighing on confidence, industrial
production and exports have already taken a dip, exacerbated by
a string of domestic difficulties, from German industry's
struggles to a slowdown in employment growth and waning
    The following are the ECB staff's new projections for
inflation and GDP growth, with June forecasts in brackets.
    The ECB updates projections once a quarter.
                2019        2020        2021
GDP growth    1.1 (1.2)   1.2 (1.4)   1.4 (1.4)
Inflation     1.2 (1.3)   1.0 (1.4)   1.5 (1.6)

 (Reporting by Balazs Koranyi; Editing by Catherine Evans)