Eurozone recovery to start in second half of 2013: ECB

European Central Bank head Mario Draghi says the eurozone economy is stabilising and that a "gradual recovery" should start in the second half of the year.

Draghi spoke after the bank held off providing further stimulus to the lagging eurozone economy. It left its benchmark interest rate unchanged Thursday at 0.75 per cent.

Draghi said the ECB was cutting its forecast for growth this year to minus 0.5 per cent from minus 0.3 per cent. That is because of a carryover from an unexpectedly large drop in the last quarter of 2012.

He added that "the projected path of the recovery remains unchanged" despite the changed projection. Draghi urged the region's governments to build on progress cutting deficits with further reforms to improve job creation and economic growth.

Draghi said it was "of particular importance" to combat high rates of unemployment for young people - currently over 50 percent in Spain and Greece.
He praised progress in reducing government deficits to an average 3.5 percent of gross domestic product. But he highlighted the need to "build on this progress" by passing pro-growth regulations "to create new job opportunities."