The head of the European Central Bank (ECB), Christine Lagarde, has warned of a major economic downturn for the European Union, leading to a surge in unemployment.
The “EU economy is experiencing a dramatic fall”, Lagarde told EU leaders during a video conference, according to Reuters.
Lagarde said the eurozone was heading for a “sharp decline” of some 13 percent in the second quarter, and reiterated the bank’s forecast of an 8.7 percent GDP drop in 2020 and a rebound of 5.2 percent in 2021.
According to the ECB chief, the full economic impact from the pandemic has not yet been reflected in the labor market, and unemployment in the 19-nation eurozone could reach 10 percent.
She noted that financial markets were relatively calm due to expectations that the bloc would act to show that “the EU is back” in action.
The ECB said last month that the economic impact of the Covid-19 pandemic has been significant, increasing the underlying financial vulnerabilities of single currency area. It indicated that the euro governments’ vast fiscal response to the pandemic could raise questions over their ability to repay debts, and could revive the threat of countries leaving the euro.
Online shopping was booming in Russia last year, with trade volumes increasing by nearly 60 percent compared to 2019, according to a business group representing major online retailers operating in...
Investing in bitcoin has already yielded US electric car producer Tesla its first gains of around $1 billion. The figure leaves the company's profits from selling its electric vehicles (EV)...
The volume of trade between Russia and Germany declined by 22.2 percent in 2020, year-on-year, to €44.9 billion ($54.4 billion), according to data from the German Committee on Eastern European...
