Skip to main content

Fiscal policy adds to headwinds

Euro-zone governments have been tightening fiscal policy this year and will continue doing so in 2024 – all the more so if Germany chooses to make some additional expenditure cuts in response to the constitutional court ruling regarding its off-budget funds. This austerity-lite supports our view that the economy will fall into recession in Q4 and do little more than flatline in the first half of 2024. Meanwhile, we expect a further fall in the core inflation rate in the euro-zone next week.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access