Lagarde says global economy resilient despite Middle East conflict and trade tensions

ECB President Christine Lagarde stated at the IMF Annual Meetings that the global economy has proven resilient despite high uncertainty, with the conflict in the Middle East causing energy market swings and trade tensions weighing on confidence. She noted that investment in artificial intelligence is supporting activity and trade, particularly in tech-integrated economies. While growth forecasts for the euro area remain positive, risks are tilted to the downside for growth and upside for inflation. Lagarde emphasized the need for sound fiscal policies and structural reforms to enhance resilience.