Comments by ECB vice president, Luis de Guindos

Luis de Guindos
  • ECB had expected Q2 GDP drop of 13%, now sees contraction "slightly better"
  • High frequency data, most recent data that the ECB is receiving shows that drop in Q2 likely to be better than expected
  • Hopes that European governments response is proportionate to the challenge

Well, the thing is while the sharp drop in Q2 isn't quite the worst-case scenario, it is still bad. The issue now is will the recovery thereafter be as robust as what policymakers and lawmakers expect it to be? That is the more pressing concern in my view and so far, most signs are pointing towards a more tepid recovery at best for the moment.