Prospects for recovery in eurozone economy improve

PROSPECTS for a gradual recovery later this year in the eurozone economy have improved but risks remain, European Central Bank president Wim Duisenberg said yesterday.

"The chances for this phase of low economic growth gradually coming to an end have now increased," Duisenberg said in remarks that were relatively upbeat given recent figures showing the eurozone economy stagnated in the first quarter.

"Indeed, although there are still some downside risks to this scenario and ongoing balance sheet adjustments make a steep and swift rise in economic activity unlikely, the ECB expects a gradual recovery to occur in the course of this year and next," Duisenberg told the Zurich Economics Club.