ECB: Euro area fiscal aid boosts growth and lowers inflation in 2022

In a pre-release of its economic bulletin published on Tuesday, the European Central Bank (ECB) revealed that the fiscal support provided to the euro area economies amidst the Russia-Ukraine war is boosting the bloc’s GDP while temporarily lowering inflation, per Bloomberg.

Key takeaways

“The total stimulus measures in response to the war are estimated to have an impact of almost 0.4 percentage points on overall growth and a limited impact of just over 0.1 percentage point on inflation.”

“Efforts should be made to increasingly target energy-related measures to vulnerable segments of the population.”

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