European Central Bank President Christine Lagarde said the euro zone economy has remained resilient, even as global trade friction and uncertainty over U.S. policy continue to cloud the outlook.

Speaking on Sunday, Lagarde pointed to the bloc’s ability to withstand recent shocks, but stressed that new risks are building. In particular, she highlighted the potential impact of escalating trade tensions, which could slow investment, weaken demand, and complicate the region’s recovery path.

Her remarks come as policymakers in Europe watch for signs that external pressures may spill into inflation, growth, and market confidence. While the euro zone has avoided a sharper downturn so far, the ECB chief’s comments suggested caution remains warranted.

Lagarde did not signal any immediate policy shift, but her warning reflected a broader concern among central bankers: that an uncertain global environment could test the region’s economic resilience in the months ahead.

Euro zone

Lagarde says euro zone holds up, but trade tensions threaten growth