ECB's Lagarde says duration of euro economy's "unprecedented decline" as yet uncertain

The coronavirus pandemic has sent the euro zone's economy into an "unprecedented decline" that is likely to steepen before a recovery phase kicks in, European Central Bank President Christine Lagarde said on Thursday. The trend pointed to "rapidly deteriorating labour markets" and "a significant contraction in economic activity" during the period of the pandemic, whose duration could not yet be determined.

ECB staff projections suggested euro area GDP could fall by between 5 and 12 percent this year, she told the bank's post-policy meeting news conference.