European Central Bank downgrades growth forecastDecember 7, 2012 - 12:28 AMT PanARMENIAN.Net - The European Central Bank (ECB) has revised down its eurozone growth forecasts for this year and next as "economic weakness extends into 2013," BBC News reported. ECB President Mario Draghi said the bank expected the bloc's economy to shrink by about 0.5% this year, before recovering later in 2013. He said weak consumer and investor sentiment was weighing on growth. Earlier, the ECB held the benchmark eurozone interest rate at the record low of 0.75%, as had been expected. Mr Draghi said rates had been left unchanged due to higher energy prices, rising taxes and the fact inflation fell from 2.5% to 2.2% last month. Interest rates are the main tool used by central banks to influence demand and therefore prices in the economy. Mr Draghi said the bank expected inflation to fall below 2% next year. The target rate is below but close to 2%. The eurozone is back in recession as austerity measures designed to reduce debt levels continue to undermine demand and confidence. The economy of the 17-member bloc contracted by 0.1% between July and September, after shrinking 0.2% in the previous three months. Meanwhile, the unemployment rate is at a record high of 11.7%. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Narek Manasyan wins European Boxing Championships silver for Armenia Armenia’s Narek Manasyan (92kg) won Armenia’s second silver medal at the European Boxing Championships 2024 on April 28. Blinken urges Azerbaijan to continue negotiations with Armenia Secretary of State Antony J. Blinken has urged Azerbaijani President Ilham Aliyev to continue negotiations with Armenia. Pashinyan, Blinken talk Armenia-U.S. ties over the phone Prime Minister Nikol Pashinyan had a phone conversation with US Secretary of State Antony Blinken on April 28, Pashinyan’s office reports. Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. |