Strengthened Spanish economy post-pandemic largely due to "foreign worker contributions", according to Lagarde

In a significant intervention at the annual Jackson Hole symposium, Christine Lagarde, President of the European Central Bank (ECB), discussed the current state of the European economy and employment growth.

The Jackson Hole symposium is a gathering of central bankers where important economic issues are discussed. This year, Lagarde took the opportunity to shed light on the European labor market and employment growth.

Lagarde emphasised the increasing flexibility of the European labor market as a significant factor in post-pandemic employment growth. She attributed half of this growth to immigration, with Spain being a prime example. The main source of foreign labor in Spain during the pandemic has been immigration, contributing significantly to Spain's economic recovery and thus supporting the robustness of Spain's GDP and by extension the Eurozone economy.

The statement about the European labor market and employment growth was made by Lagarde during her intervention at the Jackson Hole symposium. She also stated that Spain's GDP performance following the pandemic has been robust, contributing to supporting the aggregate of the eurozone.

Lagarde attributed the vigorous growth of countries like Spain to the accumulation of human capital rather than productivity improvement. She also highlighted the structural importance of immigration's contribution to the current performance of the European economy.

In a context of increasing interest rates, Lagarde expected employment to be affected and unemployment to grow. However, the opposite has occurred in Europe. Employment growth in Europe, as stated by Lagarde, is currently above historical patterns.

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Christine Lagarde concluded her statement by emphasising the robust performance of Spain's GDP, which has played a crucial role in the recovery of the Eurozone economy post-pandemic.

Strengthened Spanish economy post-pandemic largely due to "foreign worker contributions", according to Lagarde