Central Europe particularly vulnerable to global trade war: Draghi
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)
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