The latest ECB staff projections foresee a contraction in euro area real GDP of 8.0% this year; economic activity is expected to return to growth in the following two years but to recover to precrisis levels only by the end of 2022.
Inflation will remain subdued: over the projection horizon it is 1/3  BIS central bankers' speeches  expected to stay uncomfortably below our aim. This outlook is clouded by persistently high uncertainty. The risk of a deterioration in labour market conditions weighs on household consumption, while balance sheet vulnerabilities may affect credit supply and reduce business investment.