Macro - Weekly Briefings - Eurozone
Economic data released this week raised further concerns over the eurozone economy. Q1 GDP expanded by just 0.2% in Q1, broadly in line with our expectations but in all a sluggish result. Meanwhile, inflation continued to rise, reaching a multi-decade high of 7.5% in April. Worries about lasting stagflation are mounting, complicating the ECB's policy tuning even more. Yet, it seems that the case for fighting inflation is gaining force in the ECB, with the statements by the Council's members turning increasingly hawkish.
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