'European Economy slowly recovering from the Debts and Recession' - Iain Begg by Radio Sputnik published on 2015-09-04T14:57:54Z Prof. Iain Begg, Professorial Research Fellow at the European Institute, London School of Economics. --- The European Union could fall into deflation in the coming months – the European Central Bank President, Mario Draghi, has said. During his first conference since the summer break on Thursday, Mr. Draghi warned about big risks from emerging markets and decrease in Europe’s economic growth. He noted that the region might see negative numbers of inflation in the coming months, but it would be a transitory phenomenon due to low oil prices. At the moment inflation is running way below the ECB forecast. The Central Bank has also revised its forecast for Europe’s GDP growth cutting it by 0,2%. The situation got worse in recent weeks due to volatility in stock markets triggered by financial chaos in China. On August 11 the Chinese Central Bank devalued yuan by nearly two percent, saying the step was aimed at reaching a more flexible exchange rate. However, it resulted in a dramatic slump om both Asian and Western stock markets with Dow Jones having faced a historic 1,000 points fall for the first time in history. Genre EU
