Economics
Lagarde Defends ECB Economic Outlook Even as Banks Cut Forecasts
- Projections for rebound of 3.9% in 2021 still seen plausible
- Banks are increasingly predicting a double-dip recession
Christine Lagarde
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank’s latest projections for economic growth in the euro area are still “very clearly plausible” despite the resurgent coronavirus and renewed lockdowns, President Christine Lagarde said.
The ECB chief said that many of the uncertainties that previously clouded the outlook have now cleared, including U.S. elections, the Brexit trade deal with the U.K., and the start of vaccinations. At the same time, she warned that monetary and fiscal support must continue.