ECB's Draghi says eurozone growth likely in 2013

ECB's Draghi says eurozone inflation and economic growth heading in right direction in 2013

Associated Press

BERLIN (AP) -- Mario Draghi, the president of the European Central Bank, has given a cautiously upbeat assessment of the prospects of the economy of the 17 European Union countries that use the euro.

He says inflation will likely fall below the 2 percent target in the coming months and that economic growth would likely resume thanks to low borrowing rates, an improvement in financial market conditions and a pick-up in global demand.

The eurozone economy is currently in recession.

Draghi says Thursday that the risks to inflation are "broadly balanced" but that the risks to growth are "to the downside."

Draghi is speaking after the ECB kept its main interest rate on hold at the record low of 0.75 percent. The euro's strength is likely to feature heavily in his press briefing.

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