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European Central Bank lowers growth forecast

  • The European Central Bank (ECB) lowered its eurozone growth forecast on Thursday.

    The ECB expects growth to contract by 0.6 percent this year, having previously estimated a GDP drop of 0.5 percent.

    Speaking at a press conference, ECB President Mario Draghi told reporters that the Bank still saw "downside risks" for the eurozone economy, adding that a gradual recovery would begin in 2014.

    The ECB's benchmark rate remained at 0.5 percent after being cut last month.

    The decision not to lower rates comes in spite of a recession across the 17 countries that use the euro.

    Tagged as: European Central Bank, eurozone growth forecast, Mario Draghi, eurozone economy