Report
The euro zone as a whole is still clearly in a situation of excess demand
Many analysts argue that a situation of insufficient demand has returned in the euro zone, which is believed to be disinflationary. But when we look at the situation in all business sectors as a whole , we see that hiring difficulties and a lack of available equipment are still the hallmarks of the euro-zone economy, and not insufficient demand . In reality, the shortfall in investment can only be corrected very slowly, and the lack of productivity gains is keeping the labour market very tight. Despite the lack of growth, the euro zone is therefore still in a situation of excess demand for goods and services.
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Natixis
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