Optimistic about the prospects for the growth of the economy in Eurozone And with reference to the “trauma” that Greece had caused the credibility of statistics a few years ago, the head of the European Central Bank appeared today. Christine Lagarde.

According to her, the risks are limited to the growth front in the eurozone following recent trade agreements with the US, which is reflected at higher growth rates this year.

As ECB chief Christine Lagarde said during a press conference: “The risks to economic growth have become more balanced. While recent trade agreements have reduced uncertainty, a new deterioration of trade relations could further slow export and reduce investment and consumption. Climate deterioration in financial markets could lead to stricter funding conditions, greater risk disgust and weaker growth. Geopolitical tensions, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, remain an important source of uncertainty. On the contrary, the highest of the expected expenditure on defense and infrastructure, in combination with productivity reforms, will contribute to growth. Improving business trust could stimulate private investment. The climate could also be improved and the activity can be stimulated if geopolitical tensions are reduced or if the remaining commercial differences are resolved faster than expected. “

Earlier the ECB’s Board of Directors had announced his decision to maintain unchanged The three main interest rates (with the deposits at 2%), while reviewing the growth forecast this year.

Specifically, the economy is expected, according to projections, that it will grow at a rate of 1.2% in 2025, which has been revised upwards compared to the 0.9% expected in June. The growth rate in 2026 is now at a slightly lower level, at 1.0%, while the view for 2027 remains unchanged at 1.3%.

Regarding recent developments in bond markets, especially after the pressure caused by the government’s resignation in France, Kr. Lagarde appeared reassuring, saying that “state bond markets are operating smoothly and with sufficient liquidity.” He added that the ECB has all the tools needed to intervene, however, as it finds that “problems are causing smooth transmission of monetary policy.”

Regarding the financial forecasts, which are primarily supported by the ECB’s decisions, the ECB chief said that “we are lucky because the statistics that Eurostat are supplied by national statistical authorities are reliable and intact. Despite the trauma that had caused the stastized elements of Greece a few years ago, I think we have all taken our lesson now, ”he said.

It is noted that according to inflation data available, the ECB’s experts present, in their new views, a picture of inflation similar to that predicted in June. They expect that general inflation will be an average of 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027. In inflation, without energy and foodstuffs, they expect it to be 2.4% in 2025, 1.9% in 2026 and 1.8% in 2027.

However, as the ECB chief said, the prospects for inflation remain more uncertain than usual because of the unstable world environment. A stronger euro, he said, could lead to greater than expected inflation reduction. In addition, inflation could prove to be lower if higher duties lead to a reduction in demand for euro area exports and push countries with surplus production capacity to further increase their exports to the euro area.

Finally, inflation could prove to be higher if the fragmentation of global supply chains leads to increased import prices and exacerbates the restrictions of production capacity in the domestic economy. Increasing expenditure on defense and infrastructure could also lead to an increase in inflation in the medium term.