Comments from Lagarde:
- Virus will slow down production and reduce demand
- Calls for help from fiscal authorities
- Ambitions, coordinated fiscal policy response needed
- ECB measures will help smooth provision of credit
- ECB stands ready to adjust all instruments
- Latest indicators suggest considerably worse outlook
- Necessary containment measures are adversely affecting activity
- Growth moderated before the virus outbreak in manufacturing
- Growth expected to regain traction in medium-term
- Sees 2020 growth at 0.8% vs 1.1% but numbers pre-date coronavirus
- Risks skewed 'clearly' to the downside for 2020 notably and also for 2021
- Sees 2021 growth at 1.3% vs 1.4% prior
- 1.4% in 2022 vs 1.4% prior
Issuing GDP forecasts right now is embarrassing. Just say you're going to update them when they know more about the virus. Like, what's Italian GDP this month? -10% annualized?
