MW: Euro-zone economy may contract in 2012, ECB says
By Polya Lesova
LONDON (MarketWatch) -- European Central Bank President Mario Draghi said on Thursday that the bank's staff expect annual euro-zone real GDP growth in a range between 1.5% and 1.7% in 2011, and between 0.3% and 2.3% in 2013. For 2012, the ECB projections are in a range from a 0.4% drop to 1.0% growth. Compared with the September projections, "there is a narrowing of the range of the real GDP growth projection for 2011 and a significant downward revision of the range for 2012," Draghi said at a news conference. "These revisions mainly reflect the impact on domestic demand of weaker confidence and worsening financing conditions, stemming from the heightened uncertainty related to the sovereign debt crisis, as well as downward revisions of foreign demand."
