ECB’s Escrivá: Global Economy to See Further Revisions Down for Growth, Up for Inflation

27 March 2025

ECB’s Escrivá: Global Economy to See Further Revisions Down for Growth, Up for Inflation
José Luis Escrivá, governor of the Bank of Spain, at the European Central Bank Governing Council meeting in Ljubljana on October 17, 2024. Photo by Adrian Petty/ECB.

By Marta Vilar – BRUSSELS (Econostream) – European Central Bank Governing Council member José Luis Escrivá said on Thursday that the global economy will face further downward revisions for economic growth and upward revisions for inflation in some countries.

In a panel discussion at the IIF European Summit in Brussels, Escrivá, who heads the Banco de España, said that the world was currently facing ‘a very sizable supply shock’.

It was very unclear how geopolitical tensions would hit different economies, he said.

‘[C]ertainly the shock is very big and negative so, in that respect, for the global economy we will witness over time downward revisions of growth projections to different degrees, no doubt’, he said.

‘And probably certainly in some jurisdictions [there will be] upward revisions for inflation projections’, he added.

Europe faced a demand shock from expansionary fiscal policies, according to Escrivá.

‘In the US probably [too] because the reduction in taxes will outweigh any potential expenditure cuts’, he said.

 

Related articles: