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Lagarde: Economy Remained Weak In Q1, Gradual Recovery Seen This Year

ECB

President Lagarde opens the ECB post-meeting press conference with the usual assessment of current conditions and the outlook:

  • The economy remained weak in Q1.
  • Spending on services is resilient, manufacturing firms are facing weak demand and production is still subdued especially in energy intensive sectors.
  • Surveys point to a gradual recovery this year led by services.
  • This recovery will be supported by rising real incomes from lower inflation, increased wages and improved terms of trade.
  • Euro area export growth should pick up in the coming quarters as the global economy recovers.
  • Monetary policy should exert less of a drag on demand over time.

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