Eurozone could avoid recession

The eurozone economy is performing better than feared just a few months ago and the 20-nation bloc could even avoid a recession, French central bank chief Francois Villeroy de Galhau said on Wednesday.

"If I look at the situation from Europe - it's probably the same in the US, more or less - activity is more resilient than expected, and we should avoid a recession this year, which I wouldn't have (expected) three months ago," Villeroy told a World Economic Forum panel in Davos.

He added that inflation will likely peak in the first half of the year, with underlying figures hitting their high only after headline figures, and this battle against rapid price growth is not yet won.