ECB cuts growth outlook amid coronavirus crisis

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Berlin – The European Central Bank (ECB), on Thursday downgraded its eurozone growth for 2020/2021 amid the deepening coronavirus crisis, ECB Chief Christine Lagarde, said.

The ECB now expects the eurozone to expand by 0.8 per cent in 2020 down from the December forecast 1.1 per cent before the economy picks up speed to 1.3 per cent in 2021.

Meanwhile, the ECB had previously forecast 1.4 per cent for both 2021 and 2022.

Lagarde, however, said that the data was partly outdated as the forecasts were completed before the coronavirus crisis in.

She noted that the 2020 inflation rate would in at 1.1 per cent but that there was high uncertainty because the slump in demand and the collapse in oil prices.