December 6, 2023


Russia’s war against Ukraine will impact euro zone growth, but the bloc is still set for expansion, even if conflict escalates, Luis de Guindos, Vice President of European Central Bank, said Tuesday.

He said, “So, we cannot so far dismiss the possibility that stagflation occurs because even in the weakest scenario, we are looking for growth of around 2.2% in 2022,” referring to the phenomenon of high inflation and stagnating growth.

He said that although high energy prices have driven inflation to record levels, there are no signs yet that inflation expectations are rising or becoming “deanchored”.


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