According to the European Central Bank's baseline scenario, the euro area will not face a recession this year or in 2023, President Christine Lagarde said on Thursday. However, she stressed that the "horizon is clouded."
Lagarde noted that the ECB is "very attentive" to the evolution of the energy crisis, in particular on the gas front "because it has an impact on electricity prices." She stated the central bank takes into account the recent developments, including the deliveries from Russia via the Nord Stream pipeline and the European Union's decision to cut gas use by 15%, because they have an impact both on inflation and Eurozone growth.
