The president of the European Central Bank (ECB), Mario Draghi, warned Monday that the recovery economy of the euro area is “losing momentum” in its regular appearance before the Committee on Economic and Monetary Affairs of the European Parliament (EP). “As regards the economic recovery in the eurozone lose momentum,” Draghi said before the MEPs.
ECB president added that “after some expansion in recent quarters, growth Eurozone and real GDP came to a standstill in the second quarter of the year. “
Draghi reminded that information about economic conditions received throughout the summer have been” a bit weaker than expected. “
He said the industrial demand for production and manufacturing in July offered” some reason to be optimistic, “although recent indicators” indicate that there is still a sharp decline that has occurred in August, even after it has stopped. “
also alluded to a” unemployment rate too high “and a” growing weak credit “, which in his opinion is a” brake on the recovery. ”
“The risks around this expected expansion are lower risk,” he said, while noting that geopolitical tensions could “slow down consumer confidence and business activities.”
As regards inflation in the euro area, said he has been “down for a considerable period of time.”
“In August, inflation had reached 0 , 3% with a further revision of 0.4%, “he recalled, and considered that inflation” will remain low in the coming months before gradually increase during 2015 and 2016. “
Draghi said, during this period of low inflation, the ECB “is going to monitor the evolution of prices” and will focus on “the potential impact of lower growth dynamics.”
ECB President insisted that the institution “has made a huge effort in the last three years to ensure price stability,” and that has fought “successful” against the crisis of confidence in the euro, has offered the euro banking system with a “unprecedented funding and have continued lowering rates.
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