The global economy went through a deep recession earlier this year, due to the coronavirus lock-downs. But, this was also the shortest-lived recession in history, as the global economy is rebounding. The Eurozone economy fell pretty deep in recession as well, but it rebounded in the previous months too.
Although, the situation doesn’t seem so promising now, because the rebound is running out of steam. The Eurozone economy was close to stagnation even before the coronavirus, so the economic bounce will cool off now and EBC’s de Guindos feels that.
ECB Vice President, Luis de Guindos
- European banks not likely to recover from the virus crisis before 2022
- The recovery of the Eurozone economy will be a vital factor in banks’ solvency