Recent weak economic data from Germany has refocused
attention on the Eurozone’s continuing struggles and are part
of the reasons the IMF has reduced its global growth forecast.
Despite the European Central Bank’s pledge this week of further support for the euro, the fundamental challenges inherent in uniting countries with very different fiscal conditions under a single monetary policy remain. Questions about the health of the German economy have also helped refocus attention on the Eurozone’s continuing struggles. We recently spoke with Holger Fahrinkrug, Chief Economist with Meriten Investment Management about the Eurozone’s difficulties and what they might mean for Germany, Europe and the global economy.
Peripheral economies are improving in terms of their competitiveness and will benefit from domestic investment. We anticipate that they will create jobs in the future and that will help increase demand.