ECB's Draghi: Outlook for euro area fundamentally depends on global growth momentum

In his prepared statement to be delivered at the thirty-ninth meeting of the International Monetary and Financial Committee, Washington, Mario Draghi, President of the ECB, noted that the outlook for the euro area fundamentally depends on global growth momentum and added that the escalation of trade tensions and the downturn in the global manufacturing have increased the eurozone's external headwinds.

Key takeaways

• Although business investment has lost some momentum, economic fundamentals remain supportive.
• The persistence of uncertainties related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets poses downside risks to the euro area growth outlook.
• ECB Governing Council confirmed that it continues to expect the key ECB interest rates to remain at their present levels at least through the end of 2019.
• An ample degree of monetary accommodation remains necessary to safeguard favourable financing conditions and support the economic expansion.
• Preserving openness is crucial if the global economy is to thrive and secure its growth potential.