FRANKFURT (Reuters) - The euro zone economy has weathered its pandemic-induced crisis as well as possible but the long term recovery remains under threat, European Central Bank board member Fabio Panetta said on Wednesday.
A drop in global growth will continue to weigh on Europe, uncertainty is likely to hold back investment and consumption, and a tepid recovery could set off difficult-to-reverse recessionary forces, Panetta said.
“The euro area has so far weathered the consequences of the shock about as well as could be expected,” Panetta said in a speech. “Positive indications need to be taken with a pinch of salt, since the high levels of prevailing uncertainty make it difficult to rely on past regularities.”
Reporting by Balazs Koranyi; Editing by Gareth Jones