European Central Bank President Mario Draghi expects the euro zone to grow modestly in the second half of the year, helped by the ECB’s recent stimulus steps, and has pledged to do more should it become necessary.
In an interview published on Thursday by the Lithuanian business daily Verslo Zinios, Draghi warned that heightened geopolitical tensions could dampen business and consumer confidence. But he said sanctions imposed on and by Russia as a result of the Ukraine conflict had so far been limited in their impact on the euro zone economy.
Draghi also said there was a risk that insufficient structural reforms could weigh on the euro zone’s business environment. “According to the preliminary information received over the summer, economic conditions have been somewhat weaker than expected,” Draghi was quoted assaying. “Overall, however, we expect modest growth in the second half of the year.”