Coronavirus outbreak: too early to assess the magnitude of economic repercussions. Only temporary rise in headline inflation in the Eurozone. Tentative signs of improving dynamics in Switzerland's manufacturing sectors.
Chart of the month
China's vast stimulus programs managed to kick-start growth in the Eurozone three times since the global financial crisis in 2008. Especially Europe's largest economy was supported by China's rising demand for German cars and engineering tools. These days, China's growth engine has started to splutter. Policy makers are emphasising growth quality over quantity and are ready to tolerate a gradual slowdown of the economy. Hence, in contrast to the past downturns, we do not expect Eurozone economic activity to be lifted by a substantial credit boost in China this year.