The ECB notes “moderation” in the growth of the euro zone
Although the situation remains “consistent with a broad and solid expansion”, the statement marks a change in tone of the person in charge, while, until March, the ECB had revised upwards its growth projections
The European Central Bank (ECB) notes a “certain moderation” in the economy of the euro area and expressed its concern about the “protectionist threats” increasingly strong, outlining a more pessimistic picture than before.
“After several quarters of growth higher than expected, the information available since our last meeting in early March seems to indicate moderate growth,” said the president of the institution, Mario Draghi.
Although the situation remains “consistent with a broad and solid expansion”, the statement marks a change in tone of the person in charge, while, until March, the ECB had revised its growth projections upwards.
“It is clear that since the last meeting, almost all countries experienced, to varying degrees, a moderation or a loss of growth dynamics,” he insisted, days before the release of first-quarter GDP in the eurozone, on Wednesday.
Draghi stressed the reinforcement of the “protectionist threats” that they plan on the world economy, while Washington could impose tariffs on imports of steel and aluminum in the coming days.
“The risks related to factors of a global nature, including threats of a reinforcement of protectionism, have become more important,” Mario Draghi told a news conference in Frankfurt.
Precisely, the German government had declared in the morning that it expects US President Donald Trump to impose its tariffs on European steel and aluminum starting on May 1, instead of extending the current exemption.