'Seeping pessimism' hindering eurozone recovery: ECB official

Zurich

DOWNBEAT expectations about long-term growth prospects are weighing on the euro-area recovery, European Central Bank (ECB) Executive Board member Peter Praet said.

"The economic environment is characterised by seeping pessimism about long-term growth," he said on Thursday in Mannheim, Germany. While a cyclical recovery "is progressively taking hold", the negative stance "holds back a stronger recovery, as uncertainty about the future can feed back into weaker investment today", he said.