Euro area - At inflection point

Recession risk remains low despite a tougher external environment, which will remain a defining feature for the growth outlook in the coming years. Expansionary fiscal policies and rising wages should support domestic demand.
Many fragilities are lingering in the background and labour market resilience is an important precondition for the expansion to continue.
Underlying inflation pressures continue to build, supporting a gradual uptrend.
We expect no ECB policy rate changes until the end of 2021.

Danske Research Team Danske Bank A/S

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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