Draghi: ECB Can't be Sanguine Over the Economic Outlook

The euro area has seen a moderate economic recovery with GDP surpassing pre-crisis levels. Key factors include improved banking sector solvency and credit growth, driven by regulatory reforms. Domestic demand has become the main growth driver, replacing net exports. However, challenges remain, such as low bank profitability, weak inflation dynamics, and reliance on accommodative monetary policy. The ECB is committed to maintaining monetary support to ensure inflation converges towards its target.

How has the employment rate changed during the current recovery?

What are the expected trends in inflation rates over the coming months?

What measures are being taken to ensure a sustained convergence of inflation?

What uncertainties remain regarding the economic outlook for the euro area?