Europe is Facing Slower Economic Growth and Higher Inflation, says Lagarde

Euro Zone is facing slower economic growth and higher inflation as the war in Ukraine enters its second month, which is draining confidence and putting upward pressure on energy prices, according to European Central Bank President Christine Lagarde

“We will face, in the short term, higher inflation and slower growth,” she said in a speech in Nicosia on Wednesday.

“The longer the war lasts, the higher the economic costs will be and the greater the likelihood we end up in more adverse scenarios.”

She also remarked households in Europe are becoming pessimistic and cutting back on growth while business investment are likely to be hit hard as well.