- David Mackie, an economist at JP Morgan
The 17-nation bloc posted a trade deficit in the first month of 2013, the European Union's statistics office Eurostat said Monday. Region's trade gap, unadjusted for seasonal swings, stood at 3.9 billion euros in January, down from after a surplus of 10.8 billion euros in December. For the whole 2012, the Eurozone recorded an overall 81.1 billion euro surplus, with exports increasing 7% and imports rising 2% from 2011. A report also showed that an increase in shipments of manufactured goods like chemicals and vehicles offset increasing energy imports. The latest data are highlighting the weakness of the region's economy and fuelling expectations that the ECB is to cut interest rates this year.
"The ECB is reluctant to use the remaining room to maneuver. Cuts in the main policy rate are being kept for an even rainier day," David Mackie, an economist at JP Morgan, wrote in a research note. "We believe that the ECB should respond to this macro outlook."
"There are no easy answers," European Council President Herman Van Rompuy, who chairs the summit, told a news conference on Thursday night. "The good progress towards structurally balanced budgets must continue," he said.
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