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World outlook: The waiting game...

Podzept from Deutsche Bank Research

CHAPTER

The Euro Area's Technical Recession

The euro area recorded a very mild technical recession over Q4 and Q1. That mostly reflected the energy shot, which is clearly now dissipating. The point in time in which the ECB's tightening will have the maximum drag on Europe is at the start of next year. It doesn't really leave us much in terms of buffers against new shocks.

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