ECB’s Cipollone: Trade policy uncertainty could reduce business investment

European Central Bank (ECB) Executive Board member Piero Cipollone said that “trade policy uncertainty could reduce business investment.”

Additional quotes

• Potential for sudden stops in capital flows, payment disruptions and volatility in currency markets requires robust contingency planning.
• There are further signs that geopolitical considerations increasingly influence decisions to invest in gold.
• Recent increase in trade policy uncertainty could reduce euro area business investment by 1.1% in the first year and real GDP growth by around 0.2 percentage points in 2025-26.
• The observed increase in financial market volatility might imply lower GDP growth of about 0.2 percentage points in 2025.

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