Reuters reports that the European Central Bank's Survey of Professional Forecasters showed that the euro zone economy may shrink less this year than feared but its rebound is also likely to be more shallow.

According to the quarterly survey, the economy is shrinking by 7.8% this year, less than its July prediction for an 8.3% drop, while next year's growth is seen at 5.3%, below a previous forecast for 5.7%.

Although these surveys are often an integral part of the ECB's policy deliberations, its role has likely diminished this time since the economic outlook is rapidly deteriorating as governments implement lockdown measures to contain the rapid spread of the coronavirus.

Inflation in the survey is now seen at 0.3% this year, below a previous forecast for 0.4% while in 2021, it is expected to average 0.9%, down from 1% predicted in July, both well below the ECB's target of almost 2%.