ECB's Draghi Says `Fragile' Recovery Becoming More Broad-Based
ECB Council Member Mario Draghi
SeongJoon Cho/Bloomberg
European Central Bank council member Mario Draghi, seen here, told reporters in Seoul the recovery is “weak, fragile, uneven, but it’s there.”
European Central Bank council member Mario Draghi, seen here, told reporters in Seoul the recovery is “weak, fragile, uneven, but it’s there.” Photographer: SeongJoon Cho/Bloomberg
European Central Bank council member Mario Draghi said that while the economic recovery is becoming more broad-based, it remains “fragile.”
The recovery is “weak, fragile, uneven, but it’s there,” he told reporters in Seoul today. At the same time, there are risks as the economic development is not “uniform.”
The ECB yesterday raised its growth forecasts after Europe’s economy expanded at the fastest pace in four years in the second quarter, led by Germany. At the same time, indicators point a slackening in activity in the U.S. and China. ECB President Jean-Claude Trichet yesterday said recent data and survey evidence generally “confirm the expectation of a moderation” in the second half of this year, both globally and in the 16-nation euro region.
The Frankfurt-based ECB predicts economic growth to average about 1.6 percent this year and 1.4 percent in 2011. Trichet said domestic demand is starting to help an economy still reliant on exports for growth.
Draghi, who is also the governor of Italy’s central bank, said the ECB’s monetary stance will remain “accommodative.” The ECB yesterday extended emergency lending measures for banks into 2011 and kept its benchmark rate at a record-low 1 percent.
Implementing financial market reforms in a way that doesn’t threaten the economic recovery is “essential,” Draghi said.
To contact the reporters on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net; Christian Vits in Frankfurt at cvits@bloomberg.net
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