Eurozone ‘on track for recovery’

<p>ECB Mario Draghi has stated the eurozone’s recovery is underway.</p>

The eurozone's economic recovery is on track, according to the leader of the European Central Bank (ECB).

In the text of a speech prepared for the International Monetary Conference in Shanghai, Mario Draghi stated that demand for abroad, coupled with the loose monetary policy of the ECB, means the eurozone's recovery will take shape this year.

The ECB is still considering a further interest rates cut after it lowered them to a new record low in May, although the recent rise in inflation to 1.4 per cent from 1.2 per cent may affect that decision.

Mr Draghi said: "The economic situation in the euro area remains challenging but there are a few signs of a possible stabilisation."

He added the economic recovery across the eurozone will become evident during 2013, despite the fact much of the continent remains in recession.

Official data revealed recently that unemployment in the eurozone has reached a new high, with jobless rates in Greece and Spain reaching 25 per cent.

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