ECB: Growth outlook subject to considerable downside risks

  • Sees gradual economic recovery in H2 2013
  • Fragmentation in funding markets remain an issue
  • Financial stability conditions remain fragile
  • Weak economy implies higher credit risks for banks
  • back tracking on reforms could spark market tensions
  • Eurozone financial sector stress has fallen to lowest level in two years
  • Bank profitability, tensions in sovereign debt market and bank funding challenges in periphery continue to pose risks

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