Europe Refuses To Wait For The Worst For Its Economy

Head of the European Central Bank (ECB) Christine Lagarde refused to wait for the worst for the continent’s economy and continues to insist on its growth in 2021, despite all possible restrictions, writes CNBC.

The ECB kept a positive forecast on economic growth by the end of the year. In December, the regulator expected 3.9 percent of the GDP growth. In 2020, according to preliminary estimates, the decline was 7.3 percent.

Lagarde said the data are still relevant, despite new restrictions being imposed across Europe due to the coronavirus and possible new measures. « I think our latest December forecasts are quite plausible, » the ECB chief said.

Increased restrictive measures have been in place in many EU and eurozone countries since late last year. They are in force in Germany, France, Spain, Portugal, the Netherlands and Austria and will last at least until the end of January. They were imposed as a result of an increase in the number of people falling ill in late fall and early winter.

Most of the current restrictions have already been factored into the projections, Lagarde noted. Her concern is that they could remain in place after March. In that case, the initial forecast could be worsened.


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