Lagard: The Eurozone Economy is Still Recovering This Year, Provided That The Lockdown Measures Are Lifted

European Central Bank President Christine Lagarde said that the eurozone economy is still on the verge of recovery this year, provided that the general isolation measures taken to confront the Corona pandemic are lifted at the end of March and the vaccines are distributed.

Lagarde adhered to the expectations of the European Central, adding that she believes that the latest forecast in December is still largely reasonable and that the general isolation measures will continue until the end of the first quarter.

The European Central said on December 10 that it expected “adequate” levels of herd immunity to be achieved before the end of 2021.

Last month, the European Central expected economic growth of 3.9% this year in the eurozone, assuming a gradual end to the pandemic.

“Early stage of vaccine rollout laborious.”
“Start year on more positive bases than some argue.”
“Next-generation EU fund has to be rolled out quickly.”
“Dec economic projections clearly plausible.”
“Assumptions underlying forecasts still correct.”
“Forecasts based on lockdown measures until end Q1.”
“if bigger Pandemic Emergency Purchase Programme (PEPP) envelope is needed, we will recalibrate.”
“if don’t need to spend PEPP envelope, won’t spend it.”
“Compass for PEPP is favourable financing conditions.”
“Want to arrive at degree to clarity, predictability with definition of inflation target.”
“Need to better account for housing cost in inflation.”
“Large group in Governing Council keen to have entire strategy review agreed on in a single package.”