Inflation, Savings and the Economy
In the Eurozone, higher inflation has caused income sharing in favor of savings. Since the start of the pandemic and throughout the period of high inflation, the savings rate has been higher…
Philippe Waechter's blog
The Wage Momentum in the Eurozone
Wage dynamics are changing within the Eurozone. In September, the increase in the salary rate, as measured by the job search site Indeed, was only 3.6% compared to 5.1% at the…
Employment – key to the European cycle momentum
The pace of economic activity in the euro area will depend on the profile of the labor market.Three starting points:1 – Surveys suggest that businesses and households are rather pessimistic. The results are everywhere below…
Inflation slows sharply in the euro area in September
The inflation rate in the euro area stood at 4.3% in September compared to 5.3% in August. This is the lowest figure since October 2021. The underlying inflation rate was 4.55% compared to 5.3%…
Germany is struggling
The German economy will be in recession this year. The GDP figures go in this direction and the cyclical indicators do not give any signals contrary to it. Yet Germany was on…
Inflation will slow faster than expected in Europe
The major factor in Europe is the fall in energy prices. A major cause of the rise in inflation in Europe, the downward trend in gas, oil and electricity will…
The German saving rate doesn’t depend on the ECB interest rates
There is a lot of talks about the German savings rate, which is supposed to have increased recently in response to the drop in interest rates, notably the ECB rates.…
The German recession is here
The risk of recession is increasing in #Germany. The figures for industrial production (-7.5% in Q2 at annual rate (see here)) set the context for the GDP figure to be…