ECB says investment shift towards AI helps ease drag of uncertainty on euro zone growth | live
FRANKFURT, Aug 5 (Reuters) - Uncertainty created by wars and trade friction will continue to weigh on euro zone economic growth this year, but a shift in business investment towards intangible assets such as AI seems to be mitigating the drag, the ECB said on Wednesday. Uncertainty is estimated to have reduced euro zone economic growth by 0.4% between the first quarters of 2025 and 2026 as firms and households curbed spending, and it will continue to weigh on activity for the rest of the year.
FRANKFURT, Aug 5 (Reuters) - Uncertainty created by wars and trade friction will continue to weigh on euro zone economic growth this year, but a shift in business investment towards intangible assets such as AI seems to be mitigating the drag, the ECB said on Wednesday. Uncertainty is estimated to have reduced euro zone economic growth by 0.4% between the first quarters of 2025 and 2026 as firms and households curbed spending, and it will continue to weigh on activity for the rest of the year.
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