ECB's Nowotny says euro zone is not facing recession

BUDAPEST (Reuters) – Uncertainties about growth in the eurozone have risen, especially because of weak German data, but the economy is slowing down and not facing a recession, said Monday. Head of the European Central Bank, Ewald Nowotny.

"I expect that we can overcome these negative influences," Nowotny told reporters on the sidelines of a conference. "There is no prospect of a recession."

With regard to inflation, Mr. Nowotny said that there were even positive signs of rising underlying prices due to the increase in wages.

(Report by Balazs Koranyi)