ECB's Lagarde Says Growth Risks 'Tilted to the Downside'

The video discusses the potential impacts of global trade friction, geopolitical risks, and monetary policy on economic growth and inflation. It highlights how geopolitical tensions, such as conflicts in Ukraine and the Middle East, can disrupt energy supplies and trade. The effects of monetary policy tightening and easing on growth are examined, along with factors that could lead to higher or lower inflation, including wage increases, geopolitical tensions, and climate change. The uncertainty in the euro area's inflation outlook due to global trade friction is also addressed.

What could be a consequence of increased friction in global trade?

• Weakening of the global economy

• Strengthening of exports

• Increase in consumer confidence

• Boost in global economic growth

Which geopolitical event is mentioned as a risk to energy supplies?

• Brexit negotiations

• Russia's conflict with Ukraine

• Trade war between the US and China

• North Korea's missile tests

What could lead to higher inflation according to the video?

• Increase in profits

• Decrease in wages

• Stable geopolitical conditions

• Reduction in energy prices

How might extreme weather events affect inflation?

• Reduce global trade friction

• Drive up food prices

• Stabilize energy costs

• Decrease food prices

What could prevent consumption and investment from recovering quickly?

• Falling inflation

• Easier financing conditions

• Geopolitical concerns

• High consumer confidence