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ECB's de Guindos: Q1 worse than expected

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European Central Bank (ECB) Vice President Luis de Guindos stated on Friday the Eurozone's economy in the first quarter of the year had performed worse than initially expected as the latest surges in infections from Covid-19 caused downside risks to materialize.

NEWS IN ENGLISH 09.04.2021, 13:17
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ECB's de Guindos: Q1 worse than expected
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He added those risks could spread to the second trimester but reaffirmed his previous comments mass vaccination in the euro area could contribute to a rise in the gross domestic product (GDP) in that period.


De Guindos thus reiterated his projections the first quarter of 2021 would be economically weaker than expected and get "quite strong" in the second. Earlier, ECB President Christine Lagarde said the institution expected the Eurozone's GDP to grow by 4.0 percent this year.


Lagarde stated in February, that she expects 2021 to be the "year of recovery" for the Eurozone. "We expect the upswing to gather pace around the middle of the year, even if the uncertainties persist," Lagarde said in an interview with Le Journal du Dimanche. Despite this, the EU "will not see a return to pre-pandemic levels of economic activity before mid-2022," she noted.


The European official previously asserted that while the Euro area's recovery from the coronavirus has been delayed it hasn't been derailed.Lagarde had stated that the economic environment rehabilitation from the coronavirus crisis has been delayed, but the focus "is still about crossing that bridge to the recovery."

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