ECB President Warns of Increased Economic Downturn Risks

European Central Bank (ECB) President Christine Lagarde highlighted the escalating downside risks to the eurozone's economic growth during a recent press conference. The announcement followed the ECB's decision to reduce interest rates by 25 basis points, a move anticipated by markets.

Geopolitical Tensions and Market Dynamics

Lagarde pointed to global geopolitical tensions and weakening market dynamics as significant factors contributing to the economic uncertainty. Specifically, the ongoing conflicts in Ukraine and the Middle East were cited as major sources of instability.

Signs of Stabilization and Future Support

Despite the challenges, Lagarde noted some positive developments, including signs of stabilization in manufacturing activity. Additionally, she emphasized the expected boost from increased defence and infrastructure spending across several eurozone economies.