European Central Bank President Christine Lagarde said on Thursday that the ECB expects the economy to recover over the coming quarters.
Lagarde stressed that the Eurozone economy managed to avert an earlier expected contraction in the fourth quarter of 2022 and added that now industrial production is expected to pick up, the labor market remains strong and that rising wages and falling energy prices are likely to "partly offset" the loss of purchasing power that many people are experiencing.
The ECB head also warned that the government measures imposed to "shield the economy from the impact of high energy prices" should be temporary and be rolled promptly after prices fall and risks recede.
