Euro zone economy to improve, but there are risks - ECB's Draghi

Reuters
European Central Bank (ECB) President Mario Draghi and Gunther Krichbaum, head of the EU committee of the German lower house of parliament Bundestag, talk after a meeting with German lawmakers in Berlin, Germany, September 28, 2016. REUTERS/Axel Schmidt

FRANKFURT (Reuters) - The euro zone economy should continue to improve slowly, European Central Bank President Mario Draghi said on Thursday, with inflation creeping up in the coming months.

But the risks are to the downside, he said, meaning performance is more likely to be worse than better.

Draghi said it was mainly economic events outside the euro zone that would affect the economy.

"The economic recovery in the euro area is expected to be dampened by subdued foreign demand," he told a news conference follwing the ECB's decision to leave monetary policy unchanged.

"We will continue to act, if warranted by using all the instruments available in our mandate," he said.

(Written by Jeremy Gaunt; Editing by Kevin Liffey)