EFTA Document EFTA01459717

Deutsche Bank Research Europe Economy' Focus Europe Dark clouds, no storm yet Dark clouds have been gathering since the beginning of the year, but we do not see a storm yet. Europe is dealing with an external demand shock and a deflationary shock. Both threaten inflation, but the latter boosts domestic demand. Hence, external headwinds have not yet been sufficient for us to revise down our central expectation for euro-area growth, but the risks are rising. That said, the inflation out