Speaking at an event organized by the Central Bank of Southern Cyprus, Lagarde stated that the war launched by Russia in Ukraine “shadows” the economic outlook in the Eurozone.
Stating that the war caused a loss of confidence and increased energy and food prices, Lagarde said, “Europe is entering a difficult period. In the short term, we will face higher inflation and slower economic growth.” said.
Lagarde, noting that there is significant uncertainty about how big these effects will be and how long they will last, said, “The longer the war (Russia Ukraine war), the higher the costs are likely to be.” used the phrase.
Emphasizing that companies’ investments are likely to be affected by the uncertainty brought by the war, Lagarde noted that they will consider any action necessary in the context of the ongoing war.