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What explains the euro-zone’s resilience vs the US?

Recent data have shown that activity in the US is weakening as we had expected while that in the euro-zone has been surprisingly resilient. The resilience seems to reflect a combination of supply and demand factors, including easing shortages, lower gas prices and fiscal support. This suggests that further rate hikes will be needed but also that the euro-zone might not underperform to the extent that we had feared.

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