Euro zone data point to fourth quarter GDP drop: ECB

FILE PHOTO: The headquarters of the European Central Bank (ECB) are pictured in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - Euro zone economic indicators point to an economic contraction in the final quarter of 2020, the European Central Bank said in a regular economic bulletin on Thursday.

“High-frequency indicators and the latest survey results are consistent with a fall in GDP in the final quarter of 2020,” the ECB said. “Survey indicators point to a renewed contraction in activity primarily affecting the services sector.”

The ECB said that the stat of vaccinations supports expectations for a rapid recovery but it will “take time” before widespread immunity is reached and the economy can return to normal.

Reporting by Balazs Koranyi; Editing by Francesco Canepa