DAVOS: The global economic outlook just got brighter after this week’s big stimulus from the European Central Bank, leading policymakers from around the world said on Saturday.

In a panel at the World Economic Forum in Davos, they said a perkier Europe, coupled with a prolonged period of low oil prices, could help shore up the global economy following a period of underperformance that has prompted many forecasters to reduce their growth forecasts.

“Lower oil prices and the big decision by ECB could further improve world economic outlook,” said Haruhiko Kuroda, governor of the Bank of Japan.

The ECB’s planned 1.1 trillion-euro ($1.2tr) stimulus has been one of the main talking points at Davos and has helped counter some of the pessimism that has enveloped the global economy in the past few weeks.

Stock markets around the world have surged amid hopes the ECB move could help boost the ailing economy of the 19-country eurozone.

However, Benoit Coeure, an executive board member at the ECB, insisted that on its own, it won’t be enough.

He said governments across the region have to enact a raft of structural reforms to their economies, such as making their labour markets more flexible and encouraging businesses to invest.

Published in Dawn, January 25th, 2015

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