Christine Lagarde hinted at a potential economic outlook improvement during a conference organized by the Financial Times, referencing the optimistic projections published in September. “I suspect we might repeat in December,” she affirmed.
In September, the European Central Bank (ECB) revised the eurozone GDP growth projection for 2025 to 1.2%, up from 0.9% projected in June. This marks the first upward revision of growth forecasts since March 2024.
The ECB President noted that the eurozone economy performed better than expected despite the trade war initiated in April by US President Donald Trump.
Lagarde stated that the eurozone is in a “good position” concerning monetary policy and price stability, which “is the main objective of the European Central Bank.”
“With an inflation history around 2% and a medium-term projection of 2%, I would say again that we are in a good position,” she pointed out, adding that this “aligns with the outlook of a eurozone economy performing better than expected.”
Regarding the forecasts to be released in the December meeting, Lagarde refrained from giving further details as they are set to be published next week. However, she emphasized that the eurozone is “better than anticipated in April, when the US tariffs took effect, uncertainty increased, and the trade war escalated.”
