European Central Bank President: China’s economic recovery will increase global inflationary pressures

European Central Bank President Christine Lagarde said on Friday that reopening China after debilitating epidemic lockdowns is likely to add to global inflationary pressures.

“There will be restrictions and there will be more inflationary pressure due to this additional demand for goods and energy in particular,” Lagarde said at a World Economic Forum panel.

More than half of the prominent economists at the World Economic Forum Davos expect Europe to continue to face high inflation in the current 2023.

This is stated in a statement published on the website of the World Economic Forum “Davos” before its opening in Switzerland last Monday.

“In terms of inflation, leading economists see significant differences across regions, with the percentage of experts expecting high inflation in Europe in 2023 to be around 57 percent,” the document says.

Economists also expect the direction of monetary policy to remain unchanged in most regions of the world in 2023.

The inflation rate doubled in 2022 to reach 9% after standing at 4.7% in 2021, while the International Monetary Fund expected the inflation rate to reach 6.5% this year and fall next year to four%.

Source: Reuters + News