Frankfurt (Germany), 6 October (LaPresse) – ‘In the first half of the year, the euro area economy grew by 0.7% overall, thanks to resilient domestic demand.’ This was stated by the President of the European Central Bank (ECB), Christine Lagarde, in her speech to the European Parliament's Committee on Economic and Monetary Affairs. ‘The stronger growth in the first quarter partly reflected an anticipation of global trade in view of future tariff increases, while this effect weakened in the second quarter,’ explained the ECB President. ‘Weak exports, held back by higher tariffs, a stronger euro and increased global competition, will continue to weigh on growth for the rest of the year,’ Lagarde added. ‘However, the impact of these negative factors should gradually diminish next year. At the same time, economic indicators show that the services sector continues to expand, signalling some positive momentum in the economy.’ ‘Despite the slowdown in labour demand, the labour market remains a strength and will continue to support consumer spending,’ continued the Eurotower chief, stressing that ‘consumption and investment will also benefit from improved financing conditions resulting from previous rate cuts, while public investment in infrastructure and defence will further contribute to growth.’
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