The European Central Bank President Christine Lagarde on Thursday said the near term outlook for the euro area economy remained clouded with high uncertainty, but data suggest the single currency bloc could expand in the second quarter.
"The near-term economic outlook remains clouded by uncertainty about the resurgence of the pandemic and the roll-out of vaccination campaigns," Lagarde said in the introductory statement to the post-decision press conference.
"Incoming economic data, surveys and high-frequency indicators suggest that economic activity may have contracted again in the first quarter of this year, but point to a resumption of growth in the second quarter," she added.
The ongoing pandemic, including the spread of virus mutations, and its implications for economic and financial conditions continued to be sources of downside risk for the Eurozone economy outlook, Lagarde said.
"Looking ahead, progress with vaccination campaigns and the envisaged gradual relaxation of containment measures underpin the expectation of a firm rebound in economic activity in the course of 2021," Lagarde said.
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