June 25, 2020 / 2:09 PM / 8 days ago

Euro zone data confirm tepid recovery, ECB's Knot says

FILE PHOTO: ECB board member Klaas Knot appears at a Dutch parliamentary hearing in The Hague, Netherlands September 23, 2019 REUTERS/Eva Plevier

FRANKFURT (Reuters) - A string of positive economic indicators in the euro zone confirm that a recovery is on its way but the bloc may still need years to reach pre-crisis levels of activity, European Central Bank policymaker Klaas Knot said on Thursday.

“I would say that recent data solidified the confidence in our baseline scenario,” Knot, the head of the Dutch central banks, said in an online forum. “Yet, even in that baseline scenario, economic activity will only approach the pre-Corona 2019 level by the end of our projection horizon, at the end of 2022.”

Under this baseline, the ECB expects GDP to shrink by 8.7% this year and to grow by 5.2% in 2021.

Reporting by Balazs Koranyi; Editing by Catherine Evans

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