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

• Potential for sudden stops in capital flows, payment disruption 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% in 2025-2026.
• The observed increase in financial market volatility might imply lower GDP growth of about 0.2% in 2025.

This article was written by Giuseppe Dellamotta at www.forexlive.com.