Lagarde: the eurozone economy will shrink by 8-12% in 2020

US, WASHINGTON (ORDO NEWS) — Head of the European Central Bank Christine Lagarde said the eurozone economy is likely to contract by 8-12% this year due to the aftermath of the COVID-19 pandemic. It is reported Reuters.

Earlier, the ECB predicted a contraction of the economy by 5-12%. However, according to Lagarde, the “soft” scenario is already out of date. The actual result will be between “medium” and “hard” scenarios, she noted.

According to Eurostat, the GDP of 19 countries of the currency block in January-March decreased by 3.8% compared with the previous three-month period. This is the maximum quarterly decrease since the beginning of data collection in 1995.

ECB chief economist Philip Lane previously said in an interview with the El Pais newspaper that the eurozone economy is likely to not reach the pre-crisis level until at least 2021.

According to Lane, the ECB is constantly monitoring the situation and is ready to adjust all its instruments if necessary.

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