In the first quarter of 2020, which was only partially affected by the spread of the coronavirus, euro area real GDP decreased by 3.8%, quarter on quarter, reflecting the impact of the lockdown measures in the final weeks of the quarter. The sharp downturn in economic activity in April suggests that the impact is likely to be even more severe in the second quarter.
The maintenance of an adequate level of foreign exchange reserves is a major objective of official policy, because it is the foreign reserves which guarantee the stability of the exchange rate and of the macroeconomy.