Draghi: economic outlook weak, not improving

FRANKFURT Thu Nov 8, 2012 12:31pm EST

1 of 6. European Central Bank (ECB) President Mario Draghi gestures during a news conference in Frankfurt, November 8, 2012.

Credit: Reuters/Lisi Niesner

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FRANKFURT (Reuters) - The European Central Bank expects the euro zone economy to remain poor, ECB President Mario Draghi said after the bank left interest rates unchanged on Thursday.

"Economic activity in the euro area is expected to remain weak," Draghi told his regular monthly news conference after the ECB held its main interest rate at 0.75 percent.

He noted that recent economic surveys did not signal any improvement heading to the end of the year.

Highlighting weakness in the economy, German business confidence fell last month to its lowest since February 2010 and euro zone manufacturing shrank for the 15th month running

Draghi reiterated the ECB's view that inflation, which eased to an estimated 2.5 percent in October, would fall below 2 percent next year. The central bank targets inflation of close to but below 2 percent.

(Writing by Paul Carrel. Editing by Jeremy Gaunt.)

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Comments (12)
PCScipio wrote:
Hmmm. No stimulus in the EU, economic activity to remain weak; government stimulus in the U.S., consumer confidence and economic activity picking up. Thank goodness for Republican policies!

Nov 08, 2012 9:21am EST  --  Report as abuse
LoveJoyOne wrote:
It’s time for these bimbos to start taking measures to kick-start the economy.

Defending a strong euro is certainly not going to get them out of this mess.

Devalue and conquer.

Nov 08, 2012 10:13am EST  --  Report as abuse
bobber1956 wrote:
PCScipio
The only way to stimulate the US economy is with more debt. Commerce, manufacturing, the service industry, health care, are all going to tank because of the pending tax hikes and unemployment is going to skyrocket. The government can not afford the people on unemplyment, food stamps, welfare, SS, and entitlments right now, not to mention more. Food, fuel, clothing, housing, and all other essentials are all we can afford. And to top it off there is going to be a big exodus out of the country by big businees to avoid the tax bill. Tweak all you want, those are the facts on the ground. It does not matter who’s economics it is-it ain’t workin’.

Nov 08, 2012 11:24am EST  --  Report as abuse
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