Delta Variant Is ‘Growing Source Of Uncertainty’ For Economy: ECB

Coronavirus and the global recovery: the dangers of whiplash economics. Photo: (Financial Times)

WORLD, (July 31, 2021).- European Central Bank President Christine Lagarde warned Thursday that the rapid rise in coronavirus cases fuelled by the Delta variant posed “a growing source of uncertainty” for the eurozone economy.

“The recovery in the euro area economy is on track,” Lagarde said. “But the pandemic continues to cast a shadow, especially as the Delta variant constitutes a growing source of uncertainty.” The fast-spreading variant could dampen the recovery “in services, especially in tourism and hospitality,” she added.

The risks to the euro-area economic outlook are “broadly balanced.” European Central Bank President Christine Lagarde said during the bank’s six-weekly briefing in Frankfurt.

“The significant slack in the economy is holding back until underlying inflationary pressures,” Lagarde concluded. 

Source: Barrons