The Euro-zone economy is poised for a stronger expansion this year, fuelled by Germany's recovery from a period of near-stagnation, according to a recent Bloomberg poll of analysts.

Analysts now predict that the output in the 20-nation currency union will increase by 0.7% in 2024, surpassing the earlier forecast of 0.5%. Germany, the largest economy in the bloc, is expected to see its Gross Domestic Product (GDP) grow by 0.2%, an improvement from the previous forecast of 0.1%.

The positive outlook extends to other key Euro-zone economies like France, Italy, and Spain, reflecting the improving sentiment across the region. Recent first-quarter GDP data showed better-than-expected results, inflation is trending towards 2%, and the European Central Bank (ECB) is gearing up to initiate interest rate cuts.

Respondents in the survey anticipate three quarter-point reductions in the deposit rate by the ECB this year, which currently stands at 4%. This aligns with the expectations of money-market investors.

ECB President Christine Lagarde expressed optimism about the Euro-zone economy, stating that it is "recovering and we are clearly seeing signs of recovery." The survey foresees Euro-zone inflation gradually moving towards 2% in the upcoming quarters, with expectations of reaching this target by the second quarter of the following year.

Overall, the Bloomberg survey conducted from May 3-8 indicates a positive outlook for the Euro-zone economy, with signals of growth and recovery on the horizon.

(Source: Bloomberg survey of economists conducted May 3-8)