ECB’s Centeno: No Permanent Economic Loss from Pandemic

5 November 2021

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mario Centeno on Friday said the pandemic would entail no permanent economic loss and the global economic system would quickly recover.

In a speech at a conference, Centeno, who heads Banco de Portugal, predicted euro area economic activity ‘to continue to grow rapidly, exceeding its pre-crisis level in the fourth quarter of 2021. Moreover, the trajectory projected before the pandemic is expected to be reached by 2023.’

There would be ‘no permanent economic loss from the crisis’ he said. Although shortages and delivery problems are putting pressure on global inflation, ‘once base effects are off and supply bottlenecks ease, inflation is projected to decline’, he said.

The global economic system would ‘recover soon’, he said.

Centeno called for public investment in infrastructure, the climate transition and digitalisation so as to ‘enhance productivity and take us to a more sustainable economy.’