European Central Bank (ECB) President Mario Draghi said that a temporary slowdown in the euro zone does not necessarily foreshadow a serious recession.
div > div.group > p:first-child"> "During the four euro area business cycle expansions since 1970, there have been 50 soft patches — defined as a two-quarter growth slowdown — and only four recessions. In fact, the euro area faced an analogous situation in 2016, when the economy also went through a soft patch triggered by a contraction in world trade.
The 19-member region has been overshadowed by political developments in Italy, which entered a technical recession at the end of 2018; and in the U.K., with its departure from the EU yet to be finalized. There are also concerns about a potential slowdown in the Chinese economy, given a reliance on exports to the country, and global trade tensions in general.
Amid the lower growth prospects and moribund inflation, the ECB announced further expansionary measures in early March. These included another program to stimulate bank lending in the euro area and pushing back the timing for a rate hike.
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