The ECB expects a fall of 8.7% of the GDP of the euro area in 2020

The european central Bank expects a severe recession caused by the sanitary crisis in the euro zone this year, followed by a rebound more progressive, while inflation will remain far from his objective until at least 2022.

read also : The euro is bouncing, while the ECB is inflating its emergency programme

The region monetary undergoes "a sudden drop in economic activity, the fact of the outbreak of coronavirus and steps taken to contain it", summarised the president of the institution, Christine Lagarde during a press conference. The ECB expects an 8.7% decline in the GDP of the euro area in 2020, before a rebound of 5.2% in 2021 and 3.3% in 2022, but these projections come with uncertainty exceptional", according to Ms Lagarde.

For it, as the contraction that the recovery "will depend on the length and effectiveness" of the containment measures, policy stimulus and employment support, as well as the "lasting impact" of the pandemic of sars coronavirus on the application. These macroeconomic projections are those of the "base case" scenario of the ECB, whose economists have prepared two paths of "alternatives". The three sets of figures will be published in a separate press release Thursday.

read also : ECB: Lagarde "not too worried" a new crisis of the euro

However, the "balance of risks" is negative, " said Ms. Lagarde: in the eyes of the institute, therefore, it is more likely to switch to a scenario even more bleak, rather than being positively surprised.

The lower inflation

The ECB has also sharply lowered its inflation forecast for the euro zone for the years 2020, 2021 and 2022, due to the effects of the pandemic coronavirus, has announced its president.

inflation is expected to be 0.3% in 2020, 0.8% in 2021, and 1.3% in 2022, compared to a 1.1%, 1.4% and 1.6% in its previous forecast in march. These scores deviate still more from the ECB's objective of inflation "close to but below 2%" in the euro area.

The editorial team conseilleLa ECB inflates to $ 600 billion to its buyback program detteAucun commentairelansarterle 04/06/2020 16:53

this Woman is how much the Amount of his salary
they always ask the other to take the hand to the wallet but they manage to not have a wallet

LEFRED69le 04/06/2020 16:31

- 5 % for the romanians, latvians and uzbeks - 13 to France thanks to our champions at the helm

Grouchy_le 04/06/2020 16:21

Not to worry, France will be a higher number.

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