ECB’s balance sheet expands to over 50% of Eurozone GDP

The European Central Bank (ECB) is expanding its balance sheet and injecting liquidity into the system at a frantic pace in a bid to help the economy absorb shocks arising from the coronavirus outbreak. 

The central bank’s balance sheet has expanded to over 50% of the Eurozone’s gross domestic product(GDP) and is following the path of the Bank of Japan (BOJ), as noted by popular macro analyst Holger Zschaepitz. 

The ECB recently increased the size of its bond purchase program by 600 billion euros to a total of 1.35 billion euros. Some observers think the central bank would boost asset purchases by an additional trillion euros over the next two or three years.