Eurozone sees “dramatic improvement” in its economic recovery

Addressing the final day of the World Economic Forum, Head of the European Central Bank (ECB), Mario Draghi, said Eurozone had witnessed “dramatic improvement” in its economic recovery over the past two years.

He said risks had declined considerably across the board both for core Eurozone countries and the periphery.

Meanwhile, Head of the International Monetary Fund (IMF), Chritine Lagarde, has warned that deflation remains a real risk to economic recovery in the Eurozone.

Draghi assured that policymakers were keeping a close eye on the inflation rate and admitted that there were fears of the inflation rate hitting negative figures. Currently, Eurozone inflation stands at 0.8%.

During his speech, Mr Draghi said he thought the cause of low inflation lies in the fact that the region has been emerging from a banking crisis.

He noted that the inflation rate was not much lower than the rate in the US.