European Central Bank Governing Council member Ewald Nowotny said economic growth in the euro area is likely to exceed expectations this year.
The ECB expects the 18-nation currency bloc to grow 1.1 percent this year.
"There is even potential on the upside," Nowotny said. The stronger economies like Germany and Austria might register 2 percent growth, he said at a Euromoney conference in Vienna.
Nowotny, who also heads Austria's central bank said, "We are still cautious."
Further, he said there is no threat of inflation or deflation over the medium term in the region.
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