Draghi says eurozone could deal with Brexit shock

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Mario Draghi has told Brussels that the eurozone is in a good position to deal with external shocks from Brexit and geopolitical risk in Asia.

Speaking on Monday, the ECB president said the recovery in the eurozone meant its was “more robust and resilient to adverse external influences”, the Financial Times reports.

Increasing household wealth, a rise in investment and a fall in unemployment were driving the recovery, Draghi said in his quarterly update to the European Parliament’s committee on economic and monetary affairs.

Unemployment has reached an eight-year low of 9.1 per cent.

“An external change in conditions certainly won’t have the same negative impact it would have had a few years ago,” he said, adding that most companies would be able to weather a Brexit shock. Banks were also in a good place to respond, Draghi said.

“The risks to Brexit are quite complex to assess and very much will depend on the final agreement. As more time elapses, the more economies adjust to the situation.

“Given enough time, as long as serious management risks are not made, then these risks are manageable.”

The eurozone is also in a good place to deal with a slowdown in Chinese growth or an escalation of tensions in North Korea, Draghi told the committee.