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May 14, 2020 In the first quarter of 2020, affected only partially by the spread of the virus, the GDP of the Eurozone marked -3.8% and the indicators and short-term surveys signal "an unprecedented contraction". April data suggest that "this effect is likely to be even more severe in the second quarter." The European Central Bank writes this in the economic bulletin.

Unprecedented crisis, eurozone GDP may collapse by 12%
 The crisis triggered by the cornavirus pandemic has put the euro area in front of "an economic contraction which in terms of size and speed is unprecedented in times of peace", the ECB reiterates in the economic bulletin. "The measures taken to contain the spread of coronavirus (Covid-19) have caused a halt of a large part of economic activity in all countries of the euro area - reads - and on a global scale". "The indicators of consumer and business confidence indicate a drastic drop - continues the ECB - which suggests a sharp contraction in economic growth and a sharp deterioration of conditions in the labor market. Given the high uncertainty regarding the actual final dimensions of the economic repercussions, the growth scenarios developed by the ECB experts indicate that this year the euro area GDP could record a fall between 5 and 12 percent, which will have a decisive impact on the duration of the containment and success of policies to mitigate the economic consequences for businesses and workers ". The ECB's forecasts are based on a scenario that sees a gradual removal of containment measures and a recovery in economic activity, "whose speed and extent, however, remain highly uncertain".

Flexible bond purchases, ready to do what is needed
Debt purchases with the pandemic emergency program (Pepp) "will continue to be carried out flexibly over time" and "until the Governing Council has deemed the critical phase completed coronavirus-related. " The ECB writes it. The Council "reaffirms its utmost commitment to do all that will be necessary within its mandate to support all citizens of the euro area in this time of extreme difficulty".