Last week’s news on the euro-zone brought the strongest signs yet that some parts of the currency union are starting to feel the effects of the deterioration in the international environment. In particular, German exports and industrial production fell sharply in August.
We are not expecting Germany or the rest of the euro-zone to grind to a complete halt. But with growth already set to slow as the boosts from the lower euro and oil prices fade, the impact of weaker external demand will further increase the pressure on the ECB to provide additional policy support.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services