— Updating 03:55 ET Story With Inflation Comment From Par 7
SEOUL (MNI) – The European economic recovery is becoming more
broad-based but is still weak, uneven and being mainly driven by
Germany, Financial Stability Board (FSB) Chairman and Bank of Italy
Governor Mario Draghi told Market News International here on Friday.
Draghi, who is also a member of the European Central Bank’s
Governing Council, said on the sidelines of the FSB meeting here that
the contribution of net exports thanks to the trade-led recovery has
been important, but also that this trend is starting to shift.
“The recovery is becoming more broad-based now — Germany’s
consumption and investment are growing as well. Now, the recovery is
there and is spreading to the rest of Europe,” he said.
Draghi said that “recovery exists,” but also warned that it is
uneven, fragile — “in the sense that you have fragile financial
markets” — and dominated by Germany.
“Mainly you have Germany growing more than other countries in
Europe,” he said.
“(The recovery) is weak — you don’t see strong growth rates… you
still have risk coming from the sovereign bond markets and you have risk
coming from the rest of the world from all the parts that Europe exports
to.”
He earlier told a press briefing that “we are not out of crisis
that has characterized bond markets in the first part of this year” but
said that inflation expectations have been anchored.
“One remarkable outcome is that inflationary expectations are now
anchored — (they’re) at their lowest point in five years which gives
room for monetary recovery,” he said.
beijing@marketnews.com
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