EFTA Document EFTA01459718

5 February 2016 Focus Europe: Dark clouds. no storm yet Europe I Economics Dark clouds, no storm yet • Dark clouds have been gathering since the beginning of the year, but we do not see a storm yet. Today, Europe is dealing with an external demand shock and a deflationary shock. Both threaten inflation, but the latter boosts domestic demand, for a more balanced impact on GDP growth. • Currently the external headwinds are not yet sufficient to revise down our central expectation for e