Euro zone faces risk of double dip recession, ECB supervisor says

FILE PHOTO: The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - The euro zone faces the risk of a double dip recession as new economic restrictions are put in place to contain the coronavirus pandemic, European Central Bank supervisor Kerstin af Jochnick said on Thursday.

“The baseline scenario of our projections cannot be taken for granted and the possibility of a double-dip recession cannot be ruled out yet, as the new restrictions being implemented across the euro area to curb the current resurgence of COVID-19 cases will again increase uncertainty for households, corporates and banks,” she said.

Reporting by Balazs Koranyi