Vienna Jan 14 The euro zone might grow stronger
this year than so far expected, European Central Bank Governing
Council member Ewald Nowotny said on Tuesday.
The ECB raised its growth forecast for this year slightly in
December and expects the euro zone's gross domestic product
(GDP) to grow 1.1 percent.
"Maybe there is even potential on the upside (to our
forecasts)," said Nowotny, who is also the head of Austria's
central bank, adding that the outlook for Europe as a whole was
now much better than it was a year ago.
"Maybe some countries like Germany, like Austria, might reach
the 2 percent growth. We are still cautious in that our
prediction is a bit lower but that might be something to be
expected," Nowotny said.
The euro rose to $1.3695 after Nowotny comments from 1.3666
He also stressed that the ECB saw no risk of deflation or
inflation in the euro zone, "not in short run and also not in
(Reporting by Georgina Prodhan and Michael Shields)