ECB Predicts “Much Better” Economic Situation in Euro Area in 2023

**ECB President Christine Lagarde: Eurozone Economy Will Be Better Than Expected In 2023**

Speaking at the Davos Economic Forum in Switzerland, Christine Lagarde, president of the European Central Bank (ECB), declared that although the Eurozone economy slowed in 2022, it will have a much better 2023 than was initially expected.

In her speech, Lagarde cited the resilience of the Eurozone labor market, noting that the number of unemployed people is at the lowest it’s been in 20 years, particularly in Germany, which despite a difficult energy crisis, is not expected to enter a recession in 2023.

On the other hand, Lagarde also tracked the current inflation rate, which is still too high at around 10%, emphasizing that the ECB is doing its utmost to bring it back down to the 2% target. To this end, interest rates were increased by 2.5 percentage points over the last six months, and the bank’s policies will remain tight throughout 2023.

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