Economic Buzz: Christine Lagarde says China now competes directly with euro area in a number of sectors

European Central Bank President Christine Lagarde has stated that Europe's post-war growth model is eroding due to changing international environment. Lagarde, speaking during a discussion on the global economic outlook at the World Economic Forum in Geneva, said Europe's traditional growth model rested on expanding global trade, strength in mid-tech manufacturing and a stable global order underpinned by a US security umbrella. She noted that expanding trade could no longer be taken for granted, noting that more than 2,500 trade restrictions were implemented globally from January to October 2025. China now competes directly with the euro area in close to 40% of sectors where Europe has a comparative advantage, compared with around 25% in the early 2000s, she said.

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