US EditionLagarde Sees Slower Growth With Some Trade Uncertainty Lingering
ECB President Christine Lagarde highlights ongoing EU-US tariff uncertainties contributing to a projected eurozone GDP growth slowdown to 1.1% in 2026, despite initial resilience.
- Speaking in Geneva on August 20, the head of the European Central Bank, Christine Lagarde, noted that while recent trade agreements between the EU and the US have reduced some global economic uncertainty, concerns remain due to ongoing tariff-related tensions.
- The trade agreement reached in late July set an average tariff on European Union exports to the United States at approximately 12 to 16 percent, which is modestly higher than earlier projections made by the European Central Bank.
- This environment caused importers to boost inventories early in the year, driving stronger-than-expected growth in Europe’s export-oriented economy despite the challenging global trade policy landscape.
- Lagarde highlighted that while global growth has been relatively stable, recent ECB forecasts anticipate a deceleration in economic activity across the euro area during the third quarter as the effects of earlier accelerated growth diminish.
- ECB staff will incorporate the EU-US trade deal’s economic impact into mid-September forecasts, which will guide monetary policy amid ongoing uncertainty around sector-specific US tariffs.
14 Articles
14 Articles
From Geneva the head of the ECB criticizes the duties but also the agreement signed by Ursula. And it opens to China: "There are not only the USA."Who said that the trade policy, the duties, the death of the WTO (the World Trade Organisation) are boring matter? Just a Lagarde with helmet and camouflage instead of...
The growth in the European block will be affected by the adoption of EU-US tariffs and the normalisation of trade flows following the pre-tariff measures implemented in the first months of the year.
Despite the recent trade agreement between the EU and the US, the impacts will be assessed in the September forecasts - ECB expected to keep interest rates at 2%
Lagarde Sees Slower Growth With Some Trade Uncertainty Lingering
The euro-zone economy is likely to see slower growth this quarter, with question marks over global trade remaining despite recent deals with the US reducing uncertainty, European Central Bank President Christine Lagarde said.
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