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Mar 30 2012

Germany and the Eurozone Recession

Most observers believe that with the Eurozone financial crisis contained for now, dangers to the German economy have receded. In fact, with popular business and consumer surveys rising in recent months, it is widely expected that the German economy will accelerate in coming months, and recession is only a remote possibility.

This confidence in the German economy is partly due to its strong recovery since the Great Recession that is in stark contrast to those Eurozone economies plagued by slow growth and high unemployment. Our latest analysis shows that some of the strength currently associated with the German economy may be masking its vulnerabilities.

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