European Central Bank Governing Council member Mario Centeno said the euro-area economy is performing better than many anticipated in the face of record inflation and the energy crisis that erupted after Russia attacked Ukraine.
(Bloomberg) — European Central Bank Governing Council member Mario Centeno said the euro-area economy is performing better than many anticipated in the face of record inflation and the energy crisis that erupted after Russia attacked Ukraine.
“The economy has been surprising us quarter after quarter,” he told a panel hosted by Bloomberg Television’s Francine Lacqua on Tuesday at the World Economic Forum in Davos. “The fourth quarter in Europe will be most likely still positive. Maybe we’ll be surprised also in the first half of the year.”
The biggest sign of outperformance came last week, when Germany defied predictions of shrinking output in the final three months of 2022. Europe’s biggest economy may now avoid a recession altogether, offering hope to the 20-nation euro region.
Centeno said the ECB will continue with its battle against inflation — a fight that’s already brought the most aggressive bout of monetary tightening in the institution’s history.
–With assistance from Craig Stirling.
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