European Central Bank president Mario Draghi has said that he anticipates Eurozone recovery to begin by the second half of the year. He said that the central bank was ready to act to ensure this.
We expect a gradual recovery in the euro area economic activity for the second half of this year, but this scenario is subject to downside risks.
It is still unclear where this recovery is expected to come from, as the periphery of the Eurozone continues to look weak, and once strong links such as Germany appear to be losing their edge. This morning's German economic sentiment data fell faster than expected.