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European Central Bank Governing Council member François Villeroy de Galhau has stated that he expects Eurozone GDP growth to reach at least 0.6% in 2023. This announcement came as part of an interview with French newspaper Le Figaro.
Villeroy, who is also the governor of the Banque de France, stated that while the Eurozone’s recovery from the pandemic had been “vigorous,” it was still incomplete. He emphasized that the ECB’s monetary policy would continue to be supportive until the economy had fully recovered.
“We have a new strategy that is more ambitious and adapted to the situation of low inflation and weak interest rates,” Villeroy said. “We will keep the monetary policy accommodative for as long as necessary, and we will use all our instruments.”
Villeroy’s comments come as the Eurozone continues to grapple with the economic fallout from the COVID-19 pandemic. Though the region has made significant strides in vaccination efforts, many countries are still dealing with high infection rates and restrictions on economic activity.
Despite these challenges, Villeroy expressed confidence in the Eurozone’s ability to recover. He noted that the region had seen positive signs in recent months, including rising consumer confidence and a rebound in international trade.
“We have very strong fundamentals in the Eurozone, with a skilled workforce and a large internal market,” Villeroy said. “We need to build on these strengths to ensure a sustainable recovery.”
To achieve this goal, Villeroy emphasized the importance of investment in key sectors such as digitalization, climate change, and social inclusion. He also called for greater cooperation among Eurozone countries to address common challenges.
“Europe needs to work together to overcome the pandemic and ensure a strong recovery,” Villeroy said. “This means cooperating on issues such as vaccine distribution, fiscal policy, and structural reforms.”
Villeroy’s comments were met with mixed reactions from experts and policymakers. Some welcomed his optimistic outlook, noting that it could help to boost confidence in the Eurozone’s economic prospects. Others, however, expressed concern about the challenges that still lay ahead.
“Villeroy’s forecast is certainly encouraging, but there are still a lot of unknowns,” said Jennifer McKeown, head of European economics at Capital Economics. “We don’t know how the pandemic will evolve, or how effective fiscal and monetary policies will be in supporting the recovery.”
Despite these uncertainties, Villeroy remained optimistic about the Eurozone’s future. He emphasized that the region had faced significant challenges in the past, including the sovereign debt crisis, and had emerged stronger as a result.
“We have shown that we can overcome difficult situations and come out on the other side,” Villeroy said. “I am confident that we will do so again.”
