“Lack of raw materials undermines growth”

The raw materials crisis weighs on production manufacturing and weakens Euro zone growth, also threatened by inflation conditioned by the increase in energy prices. The President of the European Central Bank, Christine Lagarde, in his speech to the European Parliament, highlights some of the risks that could undermine the euro area economy in the coming months, but is nonetheless optimistic about the recovery, with GDP expected to exceed the pre-pandemic level towards the end of the year. year.

“The shortage of raw materials, equipment and labor weighs on manufacturing production, is weakening the short-term prospects”, explained Lagarde, however specifying that, “although the duration of the supply constraints is uncertain, they are likely to persist for several months and gradually diminish only in the course of 2022 “.

How many to inflation, for Lagarde at the moment the forecast is confirmed that the medium-term one “will remain below our new symmetrical target of 2%”.

As a result, despite the current price hike, “the medium-term outlook remains contained”, making it “very unlikely” that rates will be revised upwards in 2022.

The Eurotower number one explained that “at a time when purchasing power is already being squeezed by rising energy and fuel bills, an undue tightening of financing conditions is not desirable and would represent an unjustified obstacle. at recovery “.

However, reassures Lagarde, “the current futures prices indicate a significant easing of energy prices in the first half of 2022. As the recovery continues and supply bottlenecks ease, we can expect the pressure on prices for goods and services to normalize. ”

After the speech of the number one of the ECB, the spread between BTP and Bund fell below 120 after closing Friday above 123, while European stock exchanges, after a mixed opening in the first session of the week, turned positive, net of London.

By Editor

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