Lagarde: Euro zone economy is facing greater uncertainty

Xinhua News Agency, Brussels, June 20 (Reporter Kang Yi) The European Central Bank President Lagarde said on the 20th that the current economic activities of the euro zone are affected by high energy costs, deterioration of trade conditions, and the affected by the disposable income of residents. Impact, facing greater uncertainty.

Lagid said at the European Parliament on the same day that affected by the Ukraine crisis, the economic and geopolitical structure facing Europe had undergone tremendous changes, and the problem of high inflation also had an impact on the European Central Bank's monetary policy. The European Central Bank expects that the euro zone economy will increase by 2.8%in 2022, and will increase by 2.1%in 2023 and 2024. If the energy supply is severely interrupted and the price has soared further, it is expected that the euro zone economy will increase by only 1.3%in 2022, and it will shrink by 1.7%in 2023.

Lagarde said that with the economic opening of the euro zone, the demand for the demand for the recovery of the service industry, the supply of bottlenecks continued, the prices of various industries rose, and the level of inflation continued to rise. In May this year, the inflation rate of the euro area was 8.1%at an annual rate. The inflation rate of euro zones is expected to reach 6.8%in 2022, and 3.5%and 2.1%in 2023 and 2024, respectively.

Lagarde said that in view of the current inflation environment, the European Central Bank decided to take further measures to normalize the monetary policy, and it will decide to adjust the speed based on the latest data and evaluation of inflation development.

In response to inflation, the European Central Bank announced on the 9th of this month that 25 basis points were planned to raise interest rates in July and stopped purchasing from net assets from July 1. The market is generally concerned that with the end of the European Central Bank's debt purchase plan, the national financing costs of the euro zone will rise significantly, financial differentiation will intensify, and the risk of debt crisis will rise.

[Editor in charge: Zhang Yongsu]

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