European Central Bank (ECB) policy-maker, Isabel Schnabel, has suggested that the low productivity levels in the euro zone could potentially hinder the expected drop in inflation. This insight comes at a time when the ECB is facing the challenge of maintaining price stability and stimulating economic growth within the region.
Schnabel, who is also a member of the ECB's executive board, highlighted the importance of productivity growth for the long-term economic performance of the euro zone. Typically, an increase in productivity allows for higher wages and better living standards as the overall output per hour of work increases.
