Worrying about war: geopolitical risks weigh on consumer sentiment
7 April 2025By Olivier Coibion, Dimitris Georgarakos, Yuriy Gorodnichenko, Geoff Kenny and Justus MeyerMilitary and diplomatic conflicts harm economic growth. This ECB blog shows that the expected length of wars matters for how strongly they weigh on consumer sentiment.[1]Geopolitical tensions can make consumers worry about their personal financial future and the economy at large. Data from the ECB’s Consumer Expectations Survey (CES)[2] suggests both notable concerns about geopolitical tensions and…