Skip to main content

Economy stagnating; inflation volatility ahead

The recent run of better-than-expected activity data in the euro-zone only look good compared to previously dire expectations. The big picture is that the euro-zone’s growth prospects look bleak. Next week, the main event will be Thursday’s ECB meeting, where a 50bp hike looks like a done deal. We will also get the preliminary flash estimate of euro-zone GDP in Q4, which we think will show that the economy ground to a halt, and January’s inflation data, which will probably show a small rise in the headline rate.

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


Get access