Draghi expects Eurozone to decline in 2013

The European Central Bank (ECB)'s growth estimates for the Eurozone for 2013 have been revised from -0.9 to 0.3 per cent to -0.9 to -0.1 per cent. The central forecast for 2014 has been cut from 1.2 per cent growth to one per cent.

ECB president Mario Draghi has said that inflationary pressures should remain fixed in the medium term, and ECB policy shall remain accomodative. The 2012 GDP decline was due to a fall in domestic demand and exports. The Eurozone is expected to stabilise in the first half of 2013, before beginning to recover in the second half. The bank predicts inflation (measured by the Consumer Price Index) of 1.2 to two per cent in 2013 and 0.6 to two per cent in 2014