Make Kitco Your Homepage

Central Europe particularly vulnerable to global trade war: Draghi

Kitco News

FRANKFURT, June 12 (Reuters) - Central European economies may be more vulnerable to a global trade war given their high reliance on foreign trade and particular focus on single industries, such as car manufacturing, European Central Bank President Mario Draghi said on Wednesday.


"The central and eastern European business model has become vulnerable to shocks to international trade and financial conditions," Draghi told an ECB conference. "The effect of tariffs could be amplified, as a large share of goods cross borders multiple times during the production process."


"The main long-term challenge is moving towards a more balanced growth and financing model, which is more reliant on domestic innovation and on higher investment spending than it has been so far," Draghi added.


(Reporting by Balazs Koranyi; Editing by Francesco Canepa)

Messaging: balazs.koranyi.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.