EFTA Document EFTA01459615

Deutsche Bank Research Europe I Econotr:c... 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 inflati