Lagarde Says Downside Risks Less Pronounced Due to Trade Deals

The speaker discusses the economic situation in the euro area, highlighting positive employment and wage growth but noting challenges in transmitting these gains to inflation. Trade agreements are seen as reducing global uncertainty, though Brexit remains a concern. The manufacturing sector is struggling, while services and construction are strong. Overall, the economic outlook is cautiously optimistic, with some positive signs but ongoing challenges.

What is one of the positive signs mentioned in the euro area according to the speaker?

• Decreasing employment numbers

• Increasing unemployment rates

• Positive employment numbers

• Declining wage growth

What is the speaker's view on the transmission of wage growth to inflation?

• It is not yet visible

• It is happening rapidly

• It is irrelevant to the economy

• It is causing deflation

How does the speaker perceive the recent trade agreements?

• They will only benefit the US

• They will reduce global uncertainty

• They will have no impact

• They will increase global uncertainty

What is the current state of the euro area's composite PMI according to the speaker?

• In negative territory

• In positive territory

• Unchanged

• Declining rapidly

What sector is holding strongly in the euro area despite challenges in manufacturing?

• Agriculture

• Technology

• Service construction

• Retail