Christine Lagarde explained the impact of the epidemic

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The transition to a new economic model would be disastrous, first in two years

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The head of the European Central Bank (ECB) Christine LeGarde said that the economic crisis caused by the coronovirus epidemic would lead to profound changes in the global economy.

According to him, changes in digitalization and automation will accelerate, the supply chain will become smaller and the industry will become more environmentally friendly.

As Lagarde said during a speech at the online Rencontres Economics DX-N-Provence economic forum this year, the European Central Bank will have to maintain exceptionally soft monetary policy for some time and develop the financial tools necessary to transform the economy. Will help


Christine Lagarde
Head of the European Central Bank

The head of the ECB also said that all this would definitely affect consumer prices. Most likely, it will be deflationary pressure first, and then inflation dynamics. According to some estimates, the supply chain will shrink by about 35% in the global economy, and the level of robotics will increase by 70–75%.

Lagard noted the rapid development of online commerce during a period of quarantine restrictions, when many were forced to stay at home. This idea, in his opinion, would hasten the decline of traditional trade.

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Earlier, the International Labor Organization (ILO) reported that nearly one in six people in the world under the age of 29 stopped working due to the coronavirus virus epidemic. The epidemic not only caused significant employment losses among the youth, but also “violated the education and training system, creating significant barriers for those wishing to enter the labor market or change jobs”.

Read:

COVID-19 and Digitization of Financial Services: Problems and Prospects

How has coronovirus affected the world’s largest e-commerce markets

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According to the content Interfax-Ukraine


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