The euro zone is not threatened with stagflation – De Guindos (BCE) | Photo credits: European Central Bank
FRANKFURT, March 22 (Reuters) – Russia’s invasion of Ukraine will hurt the euro zone’s economy, which will nevertheless continue to grow even if the war escalates, Luis de Guindos, the deputy chairman of the Eurozone, said on Tuesday. European Central Bank (ECB).
“So we can so far rule out the possibility of ‘stagflation’ [un environnement économique alliant croissance faible et forte inflation, ndlr]because even in our most pessimistic scenario, we are looking at growth of around 2% in 2022,” he told a conference.
Luis de Guindos added that while high prices in the energy sector were pushing inflation to highs, there was no indication yet that inflation expectations are starting to rise. (Report Balazs Koranyi; French version Laetitia Volga, edited by Nicolas Delame)