ECB drops growth forecasts for 2013

The ECB has cut growth forecasts for next year as President Mario Draghi warned of a continued gloomy outlook for Europe in 2013.

Despite markets being more upbeat in the eurozone since the summer, Draghi said economic weakness would extend into next year as uncertainty will weigh on consumption and investment. The ECB's quarterly forecasts are expressed in ranges and the midpoint of the new ranges show eurozone GDP contracting 0.3% for the whole year, sharply revised down from September's projection of 0.5%, according to the FT. Despite the reduction, markets were up yesterday in Europe. The DAX reported a 1.07% rise to 7,534.54 points and the CAC 40 climbed 11.15 points, or 0.31%, to 3601.65. The ECB als...