Frankfurt (Germany), Mar 6 (LaPresse) – ‘Risks to economic growth remain tilted to the downside. An escalation of trade tensions would lower growth in the euro area, dampen exports and weaken the global economy,’ This was said by the President of the European Central Bank (ECB), Christine Lagarde, during a press conference in Frankfurt. ‘Ongoing uncertainty over global trade policies could drag down investment. Geopolitical tensions, such as Russia's unwarranted war against Ukraine and the tragic conflict in the Middle East, also remain a major source of uncertainty,’ Lagarde further said. ‘Growth could be lower if the lagged effects of monetary policy tightening last longer than expected. At the same time, growth could be higher if easier financing conditions and falling inflation allow domestic consumption and investment to recover more quickly. Increased spending on defence and infrastructure could also contribute to growth,' the ECB President added.
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