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MNI BRIEF: War-Related Fiscal Policy Boost For EZ: ECB Report

(MNI) LONDON
(MNI) London

Fiscal measures by member sates related to the war in Ukraine will have a beneficial impact on the eurozone economy in 2022, a pre-released report in the European Central Bank's monthly bulletin suggests.

According to the report, war related spending could increase overall GDP in the single currency area by 0.4% in 2022, while policies to help lower energy price inflation could take 0.4 percentage points off of annual consumer prices, the report notes.

According to the ECB, the inflation impact, which feeds mainly through the energy component, "will depend on how much subsidies affect consumer prices, as well as on other behavioural responses stemming from country-specific features of the measures."

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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