ECB's Lagarde Says Economy Probably Contracted in 4Q

The transcript discusses the strong rebound of real GDP in the euro area during the third quarter, despite remaining below pre-pandemic levels. It highlights the impact of the pandemic resurgence and containment measures on economic activity, particularly affecting the services sector. Fiscal policies support households and firms, but consumer caution and business investment challenges persist. The vaccine rollout offers hope for resolving the health crisis, though widespread immunity will take time. Medium-term recovery is expected, supported by favorable financing conditions, expansionary fiscal policies, and increased demand as restrictions ease.

What was the percentage increase in real GDP in the euro area during the third quarter?

• 12.4%

• 9.8%

• 10.2%

• 15.6%

Which sector was more adversely affected by the new restrictions and social interaction limitations?

• Technology sector

• Services sector

• Industrial sector

• Agricultural sector

What is one reason consumers remain cautious during the pandemic?

• Decrease in online shopping

• Rise in stock market investments

• Impact on employment and earnings

• Increase in travel opportunities

What factor is expected to support the recovery of the euro area economy over the medium term?

• Expansionary fiscal stance

• Reduction in technological advancements

• Increase in oil prices

• Decrease in global trade

What is a potential challenge mentioned regarding the resolution of the health crisis?

• Immediate widespread immunity

• Lack of vaccine availability

• Time needed to achieve widespread immunity

• Decrease in healthcare funding