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 role do vaccines play in the economic recovery according to the text?

What are the expected medium-term supports for the euro area economy?