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Lagarde: Growth Risks Tilted To Downside

ECB

Lagarde: The risks to economic growth remain tilted to the downside. Growth could be lower if monetary policy effects are stronger than expected, a further slowdown in international trade or weak global economy.

  • Russia’s war in Ukraine and the Middle East instability are major sources of geopolitical risk.
  • Growth could be higher if inflation comes down faster than expected and rising real incomes mean spending rises more than anticipated, or if the world economy grows more strongly than expected.

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