Global economic recovery gaining momentum lagarde

According to Christine Lagarde, the President of the European Central Bank (ECB), the global economic recovery is gaining momentum. Here are some key points she has made on this topic:

  1. Improved growth prospects: Lagarde has stated that the global economy is showing signs of improvement, with growth prospects looking more positive than they did a few months ago.
  2. Fiscal policy support: She has emphasized the importance of fiscal policy support in driving the recovery, particularly in countries with more room for maneuver in their budgets.
  3. Monetary policy still accommodative: Lagarde has reiterated that monetary policy will remain accommodative for the time being, with interest rates likely to remain low to support the recovery.
  4. Risks still present: However, she has also cautioned that risks to the recovery remain, including the ongoing pandemic, trade tensions, and geopolitical uncertainties.
  5. Inflation concerns: Lagarde has expressed concerns about inflation, particularly in the euro area, where prices have been rising at a faster pace than expected. She has emphasized the need to monitor inflation closely to ensure it remains within target ranges.
  6. Sustainable growth: Lagarde has emphasized the need for sustainable growth, rather than just a short-term recovery. She has called for policies that promote investment, innovation, and inclusivity to ensure that the recovery benefits all segments of society.

Some of the key data points that support Lagarde's assessment of a gaining momentum in the global economic recovery include:

  1. Global GDP growth: The International Monetary Fund (IMF) has revised its global GDP growth forecast upwards, with growth expected to reach 3.4% in 2023, up from 3.2% in 2022.
  2. Industrial production: Industrial production has been recovering in many countries, with the global industrial production index rising to its highest level since the pandemic began.
  3. Trade: Global trade has also been recovering, with the World Trade Organization (WTO) reporting a 4.5% increase in global trade in 2022 compared to the previous year.
  4. Employment: Employment rates have been improving in many countries, with the unemployment rate in the euro area falling to its lowest level since 2019.

Overall, while there are still risks and challenges ahead, Lagarde's assessment suggests that the global economic recovery is gaining momentum, driven by a combination of fiscal and monetary policy support, as well as improving economic fundamentals.