'Brexit will help global growth' says European Central Bank President Christine Lagarde

European Central Bank President Christine Lagarde said global growth is likely to get a boost from abating uncertainties on trade issues in the wake of new pacts being signed. Speaking at the World Economic Forum 2020 on Friday, the former IMF chief said that issues like trade and Brexit have become more clear now. 

'Will eventually be reflected in prices'

Speaking further she said that the income growth and low employment will eventually be reflected in prices. She added that trade agreements which were previously uncertain were now being negotiated and completed. She further said, “I think the distribution of benefits and costs as a result of trade diversion remains to be seen because it is not going to be win-all arrangements. There will be some downside effect and we at ECB are measuring where the chips will fall and who will lose out of that re-diversion under the various agreements.'' 

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Read: Germany's Finance Minister Says UK Will Face Consequences Of Brexit

Meanwhile, German Finance minister Olaf Scholz recently said that he was confident of the fact that his country won’t suffer from Brexit but Britain will inevitably face the consequences of it. After a long delay, Britain is all set to leave the European Union on January 31. Speaking at the World Economic Forum in Davos, he said that following Brexit, the financial sector of Britain won’t be as important to EU as it is now. He also said that a non-member cannot have equal rights and advantages as a member adding that this would be an important factor in the upcoming meeting between the European Union and Britain. 

Read: EU Chiefs Sign Brexit Deal, European Parliament To Ratify It On Jan 29

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On January 23, Queen Elizabeth gave royal assent to the bill brought by British Prime Minister Boris Johnson as the UK moved another inch closer to its exit from the current 28-member bloc.The presidents of the European Commission and the European Council signed Britain withdrawal agreement popularly called Brexit deal, from the EU on January 24. Ursula von der Leyen and Charles Michel signed off the Brexit deal which will now proceed for ratification by the European Parliament on January 29.