Lagarde: Immigration Strengthened Europe's Economy Post-Pandemic

Impact of Foreign Workers on Economy: European Central Bank President Christine Lagarde highlighted that the increase in foreign-born workers post-pandemic has significantly contributed to economic growth and helped reduce inflation in Europe.

Economic Growth Examples: Lagarde cited Germany and Spain as examples where GDP would be lower without the contributions of foreign labor, emphasizing its role in meeting demand after pandemic-related stimulus.

Political Backlash and Labor Shortages: Despite the benefits of immigration in easing labor shortages due to aging populations, Lagarde warned that political pressures may limit future inflows of foreign workers.

Trends in Workforce Composition: In 2022, foreign-born workers accounted for only 9% of the EU's labor force but represented half of its growth over the past three years, with a similar trend observed in Japan.