Lagarde: Slowdown May Deepen, Inflation Risks on Upside

The transcript discusses the economic slowdown in the euro area, driven by high inflation, gas supply disruptions, and declining confidence. It highlights the labour market's resilience but warns of potential unemployment increases. Fiscal policies should be temporary and targeted, with structural reforms to boost growth. Inflation is rising, mainly due to energy and food prices, with underlying pressures remaining high. Risks to economic growth are on the downside, while inflation risks are on the upside, influenced by geopolitical tensions and energy prices.

What are the expected impacts of the ongoing war in Ukraine on the economy?

How is the labour market performing in the context of the current economic challenges?

What are the implications of rising energy and food prices on inflation expectations?