Pandemic-related economic uncertainty remains high: ECB

Global economic recovery still faces uncertainty related to the dynamics of the COVID-19 pandemic and the speed of vaccination campaigns, the European Central Bank (ECB) said in its economic bulletin published on Thursday, reported Xinhua.

The recovery in global economic activity continued towards the end of 2020 against rising headwinds from the pandemic resurgence, with the most recent wave weighing less strongly on economic activity than the first wave in March and April 2020, the ECB said in the report over a review period between Dec. 10 and Jan. 20.

"However, slower than expected progress on vaccination rollout and further intensification of the pandemic could also imply stricter and longer lockdowns that will weigh on global growth prospects," the ECB said.

In the euro area, the manufacturing sector has continued to hold up well, but the services sector is being curbed amid a new round of containment measures, leading to growth patterns uneven across sectors, according to the report.

Growth in euro area trade has moderated in the final months of 2020 following the rebound seen in the third quarter, it also noted.

The ECB underlined that the economic recovery in the euro area should be supported by "favorable financing conditions, an expansionary fiscal stance and a recovery in demand as containment measures are lifted and uncertainty recedes."

The report also gave a brief review of major economies in the world.