-OECD
The Organization for Economic Co-operation and Development revised upwards its 2015 growth outlook for the Euro zone amid the positive effect of low oil prices and ECB's stimulus. The think-tank now predicts the 19-nation currency bloc to expand 1.4% this year, up from the 1.1% growth expected in the previous estimate in November. Looking ahead, the growth is now forecast to reach 2.0% next year, compared with 1.7% predicted in November. However, the OECD highlighted that the growth within the Euro area will remain extremely uneven. The Paris-based organization added budgetary measures should be more supportive of growth after years of consolidation in the Euro bloc.
Meanwhile, speaking at the inauguration ceremony of the new $1.4 billion ECB headquarters in Frankfurt, President Mario Draghi defended the central bank's actions amid violent anti-austerity protest outside the ECB premises. Draghi also warned that isolation and nationalization would not solve Euro zone's problems, urging for more integrity. Last week, the ECB started a monthly 60 billion euro bond purchase programme, designed to buffer the Euro zone's economy and underpin inflation toward the central bank's goal of just below 2%. ECB officials, including Draghi, have in recent days defended the ECB's stimulus efforts, which should help the Euro area's economy turn the corner.
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