ECB President Lagarde is Still Holding on to Economic Expectations

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President Christine Lagarde of the European Central Bank (ECB) is still holding on to the expectations expressed in December about the eurozone’s economic growth this year.

 

Due to the increasingly strict and longer lockdown measures against the proliferating coronavirus, those forecasts may come under pressure.

Last month, the ECB issued a new growth forecast for the euro area in 2021 of 3.9 percent. This prediction is still “credible”, according to Lagarde.

In that forecast, the ECB took into account the new lockdowns against the second corona wave. But the roll-out of vaccines is slow, and the number of infections continues to rise, with even stricter measures in many European countries.

Lagarde did say that certain uncertainties that clouded the outlook have now disappeared, such as the Brexit deal between the United Kingdom and the European Union and the start of vaccinations.

She indicated that there remains a need for monetary and fiscal support for the economy. Next week, there will be a policy meeting of the ECB, which increased its bond-buying program last month.

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