Eurozone gradual recovery tipped

The European Central Bank expects a "very gradual recovery" in the debt-crisis-hit eurozone to start this year.

"The economic situation in the euro area remains challenging but there are a few signs of a possible stabilisation," bank chief Mario Draghi (pictured) said yesterday.

"Our baseline scenario continues to be one of a very gradual recovery starting in the latter part of this year," he told an international monetary conference in Shanghai.

The debt crisis that has engulfed several eurozone nations, most notably Greece, has led to speculation of a possible break-up of the monetary union.

"Now the union is more resilient and stable than before," Draghi said.

The bank would "continue to support macroeconomic performance by ensuring price stability in the euro area". He did not directly answer a question on quantitative easing, but said the EU had "narrower channels" to do this than the US.

Last month the bank cut interest rates in an attempt to stimulate the eurozone's economy. AAP