According to rahnam news agency, quoted by Rashatoudi, the head of the European Central Bank (ECB), Christine Lagarde, warned on Friday that growing geopolitical tensions could accelerate the process of “de-globalization” of the world economy, the consequences of which could harm all countries.
According to Lagarde; Europe is now at a critical juncture and is facing a series of common problems including “de-globalization” and “de-carbonization”.
There are growing signs that the global economy is fragmenting into competing blocs, the European Central Bank president told the European Banking Congress.
Referring to the economic problems in the European continent, Lagarde warned that the reduction of the working-age population in this continent will begin in early 2025.
He said: “With the emergence of new trade barriers, we need to re-evaluate supply chains and invest in those chains that are safer, more efficient and closer to home.” As societies age, we will need to use new technologies to produce more with fewer workers.
According to Lagarde; Governments currently have the highest levels of debt since World War II, and Europe’s economic recovery budget is set to expire in 2026.
Lagarde’s warning follows earlier reports from the European Central Bank that the global economy is going through a period of “change and transformation”.
According to the European Central Bank, a fragmented world means worse inflationary conditions and financial uncertainty.
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