Friday 20 October 2017

Eurozone growth too weak to create jobs says ECB executive

An employee sews while working in a factory in the city of Blagoevgrad, Bulgaria July 2, 2015. Greece is the third-largest investor in Bulgaria and is also Bulgaria's fourth-largest export destination. Picture taken on July 2, 2015. To match EUROZONE-GREECE/BULGARIA REUTERS/Stoyan Nenov
An employee sews while working in a factory in the city of Blagoevgrad, Bulgaria July 2, 2015. Greece is the third-largest investor in Bulgaria and is also Bulgaria's fourth-largest export destination. Picture taken on July 2, 2015. To match EUROZONE-GREECE/BULGARIA REUTERS/Stoyan Nenov

Balazs Koranyi

Economic growth in the euro zone is still too weak to create a sufficient number of jobs, European Central Bank Executive Board member Benoit Coeure told a French newspaper group EBRA today.

"Growth is still not strong enough to create a sufficient number of jobs," Coeure told the group.

"When inflation is weak, the best way to bring it up to the 2 percent objective is to support economic activity," Coeure said.

"Today, therefore, growth and employment are prerequisites for price stability."

Figures released earlier this week show that the euro zone economy grew slightly faster than expected in the second quarter.

The European Union's statistics office Eurostat said gross domestic product in the 19 countries sharing the euro rose 0.4pc quarter-on-quarter in the April-June period for a 1.5pc year-on-year rise.

This is a revision of the previously reported figures of a 0.3pc quarterly rise and a 1.2pc year-on-year gain.

Reuters

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