Lagarde says the worst of the coronavirus crisis has likely passed, but recovery will be a 'complicated matter'

PARIS, (ST) – Christine Lagarde, the president of the European Central Bank, warned that while the world may be past the worst of the coronavirus crisis, a recovery will likely not be straight forward.

She added the economic crisis caused by the outbreak of the new Corona epidemic will affect deeply on the global economy.

The coronavirus pandemic has brought about the "sharpest, deepest recession," but "we are probably past the lowest point," Lagarde said Friday during the online Northern Lights Summit, adding that "we are moving towards a recovery."

 

Still, Lagarde cautioned that a recovery might not be as swift and strong as some hope. "The recovery is going to be a complicated matter. I would characterize it as sequential, and restrained," she said.

The ECB estimates that euro area gross domestic product slumped 16% in the first half of 2020, but expects a second-half rebound to drive positive growth in 2021.

Source: Business Insider

Raghda Sawas