Lagarde, ECB President: "Eurozone Economic Stability, COVID-19 is a Threat"

Christine Lagarde, President of the European Central Bank (ECB)
[Photo by AP Yonhap News]

[Asia Economy Reporter Changhwan Lee] Christine Lagarde, President of the European Central Bank (ECB), evaluated on the 6th that the Eurozone economy is stabilizing, but the novel coronavirus in China could be a variable.

According to Bloomberg, President Lagarde stated in a speech at the European Parliament on the same day, "The Eurozone economy is maintaining a recovery trend with increased consumption, the lowest unemployment rate in 12 years, and record-high employment rates," adding, "Optimistic indicators are also emerging."

However, she said, "Although the Eurozone economy is stable, ongoing threats such as the novel coronavirus in China could undermine stability, and uncertainty remains high." President Lagarde also warned the previous day, "While the threat of a trade war between the US and China seems to have eased, the novel coronavirus adds a new layer of uncertainty."

She assessed that difficult conditions are continuing, reducing the ECB's capacity for additional stimulus policies. President Lagarde explained, "Due to low interest rates and low inflation, central banks worldwide, including the ECB, face a recession but have significantly less room to ease monetary policy."

She also added, "Inflation remains weak, and with continued low growth, the likelihood of inflation rising in the future is low," and "The lowest interest rates also raise concerns about real estate bubbles in major markets."

This content was produced with the assistance of AI translation services.