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High-frequency indicators and the latest survey results are consistent with a fall in GDP in Q4 2020, the European Central Bank (ECB) said in its economic bulletin published on Thursday.

Additional takeaways

“Survey indicators point to a renewed contraction in an activity primarily affecting the services sector.”

“Financial conditions in the euro area have loosened somewhat further since the Governing Council’s meeting in September 2020, amid improved risk sentiment on the back of positive announcements about vaccines.”

“The coronavirus pandemic has continued to influence monetary dynamics in the euro area.” 

“Substantial fiscal support has mitigated the significant negative impact of the coronavirus pandemic on the real economy.” 

“Incoming survey data point to a continued growth momentum at the start of the fourth quarter, although consumer confidence remains weak.”