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ECB's Lagarde urges Europe to shift from export reliance to domestic demand for economic resilience.
European Central Bank President Christine Lagarde warned that Europe must move away from its outdated export-driven growth model, citing global shifts, geopolitical risks, and supply chain vulnerabilities.
She urged reducing internal trade barriers and boosting domestic demand to build resilience, as overreliance on critical imports—especially from China—threatens economic stability.
Despite stagnant exports and weak productivity, rising government and intangible investment, along with lower interest rates, are supporting a shift toward home-based growth, with domestic demand projected to drive 3.1 percentage points of growth by 2027.
Lagarde del BCE insta a Europa a pasar de la dependencia de las exportaciones a la demanda doméstica de resiliencia económica.