ECB’s Vujčić: Inflation Risks Balanced, Growth More Resilient Than Expected

11 November 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Boris Vujčić said on Tuesday that inflation risks were balanced and economic growth had held up better than anticipated.

Speaking at the UBS European Conference in London, Vujčić, who heads the Croatian National Bank, said that risks to inflation were now balanced and “growth has proven to be more resilient than we thought at the beginning of the year.”

He pointed to the rerouting of Chinese goods, US tariffs, and uncertainty around household spending as the main sources of risk.

According to Vujčić, tariffs have had less impact on Europe’s economy than initially expected, though the effects of import frontloading before the tariffs took effect are still being absorbed.

He noted that the ECB continued to struggle to explain why household consumption had remained consistently weak.

Europe was increasingly facing stronger competition from Chinese products in the automotive and machinery sectors, areas in which European firms have traditionally excelled, he said, calling this a challenging issue to address.