ECB’s Lagarde warns post-pandemic imbalances may curb growth – Reuters

FRANKFURT, Oct 8 (Reuters) – The euro zone’s economic recovery is facing frictions and imbalances that could hold it back and last beyond the end of the pandemic, European Central Bank President Christine Lagarde said on Friday.

“We’re seeing rising energy prices that are affecting real income and supply chain disruptions that are holding back industrial productions,” Lagarde said in a video message.

“That imbalance should be temporary even if it’s hard to predict exactly how long disruptions would last. But at the same time the pandemic is also producing more lasting shifts in demand that could lead to lingering supply/demand imbalances across sectors.” (Reporting by Francesco Canepa; Editing by Alison Williams)

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