|20 February, 2020

Coronavirus a new threat to euro zone expansion: ECB

"In particular, the outbreak of the coronavirus and its potential effect on global growth add a new layer of uncertainty."

Inflated euro sign is seen outside the new headquarters of the European Central Bank (ECB) in Frankfurt, January 22, 2015. Image used for illustrative purpose.

Inflated euro sign is seen outside the new headquarters of the European Central Bank (ECB) in Frankfurt, January 22, 2015. Image used for illustrative purpose.

REUTERS/Kai Pfaffenbach

FRANKFURT- The euro zone is on track for a modest economic growth but weak trade and the coronavirus outbreak keep the outlook uncertain, European Central Bank Vice President Luis de Guindos said on Thursday.

"The underlying fundamentals for a continued though moderate expansion of the euro area economy remain in place, as foreseen in the December 2019 Eurosystem staff projections," de Guindos said in Frankfurt.

"But the risks surrounding the euro area remain tilted to the downside," he said, largely repeating the ECB's most recent assessment. "In particular, the outbreak of the coronavirus and its potential effect on global growth add a new layer of uncertainty."

(Reporting by Balazs Koranyi) ((Balazs.Koranyi@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net))

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