Prolonged Uncertainty in Global Economy Looms

Despite potential short-lived nature of a global trade war, uncertainty in the global economy will likely persist, according to European Central Bank's Gabriel Makhlouf. Elevated public and private debt levels may exacerbate financial system risks. These uncertainties present significant downside economic risks.

Economic uncertainty is expected to endure even if the global trade war is brief, European Central Bank official Gabriel Makhlouf stated on Tuesday.

Makhlouf, who is also the governor of the Irish Central Bank, emphasized that the effects of uncertainty could have a lasting impact on the global economy.

He highlighted that elevated levels of public and private debt could further amplify risks across the financial system, posing significant economic challenges.

(With inputs from agencies.)