ECB President Christine Lagarde said, “Despite the adverse effects of the energy shock, the economy showed resilience in the second quarter.” “Economic growth covers a wide range of countries and industries, and this trend is likely to continue into the third quarter,” she said at a press conference in Berlin on Thursday. Prospects for economic growth have improved recently. Employment growth continues to slow. Lagarde said, “Economic growth prospects face downside risks,” and “this is due in particular to the development of the Middle East conflict and Russia's unprovoked war against Ukraine.” She said that inflation will continue to be well above target until the first half of 2027. “The inflation outlook is at upward risk”. “The energy shock is likely to intensify further, and its impact on other prices and wages may also be stronger than currently anticipated.”

ECB President Christine Lagarde said, “Despite the adverse effects of the energy shock, the economy showed resilience in the second quarter.” “Economic growth covers a wide range of countries and industries, and this trend is likely to continue into the third quarter,” she said at a press conference in Berlin on Thursday. Prospects for economic growth have improved recently. Employment growth continues to slow. Lagarde said, “Economic growth prospects face downside risks,” and “this is due in particular to the development of the Middle East conflict and Russia's unprovoked war against Ukraine.” She said that inflation will continue to be well above target until the first half of 2027. “The inflation outlook is at upward risk”. “The energy shock is likely to intensify further, and its impact on other prices and wages may also be stronger than currently anticipated.”