ECB says eurozone Q4 GDP likely to fall
Source: Xinhua | 2021-01-08
Incoming data and recent survey results pointed to a fall in eurozone gross domestic product (GDP) in the fourth quarter of 2020, the European Central Bank (ECB) said in its regular economic bulletin report published on Thursday.
"High-frequency indicators and the latest survey results are consistent with a fall in GDP in the final quarter of 2020," the ECB said in the report.
The central bank cited "a clear downward trend" in high-frequency mobility indicators for euro area countries in recent months, as well as a similar trend in a composite stringency index. "Survey indicators point to a renewed contraction in activity primarily affecting the services sector," it added.
However, the ECB said the decline in economic activity in the final quarter would be "to a much lesser extent" than observed in the second quarter of 2020.
Seasonally adjusted GDP in the euro area in the third quarter increased by 12.5 percent from the previous quarter, but the rebound was met with headwinds as many European countries re-introduced containment measures after the number of new cases climbed in the weeks leading up to Christmas.
"Looking ahead, expectations for growth in the medium term remain tightly linked to the gradual evolution of the pandemic and the successful rollout of COVID-19 vaccines," the ECB said.
The European Union on Wednesday approved the Moderna vaccine to be used across the bloc, a second COVID-19 vaccine authorized by the EU after the Pfizer-BioNtech vaccine, which was granted approval on Dec. 21.
Meanwhile, 235 candidate vaccines are still being developed worldwide -- 63 of them in clinical trials -- in countries including Germany, China, Russia, Britain and the United States, according to information released by the World Health Organization on Jan. 6.
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