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German crisis rebounds during Merkel’s twilight months: Eco Week

(Bloomberg) – Germany’s economy is going through a time of change as it tries to shake off the coronavirus crisis as Chancellor Angela Merkel’s era draws to a close. voters will choose a new government. in an election that heralds a turning point as it leaves a political vacuum after 13 years in office – accompanied by a sense of unfinished business to revamp the continent’s growth engine.The task that will now pass to the successor of Merkel, who faces the challenge of how to reorganize Europe’s largest economy and reap the opportunities of the post-crisis world, without losing its edge. not easy. still fully in place, with data expected this week to show the extent of the economic damage caused during lockdowns earlier in the year. At least business confidence on Tuesday could continue to rise above pre-crisis levels. The shape of the next coalition could then determine how quickly Germany will regain its usual fiscal rectitude. Too fast a reduction in support could hurt the rebound, a risk highlighted by the International Monetary Fund last week. Finance Minister Olaf Scholz, Merkel’s Social Democratic partner in government, could share his views on the matter in a conversation with Bloomberg on Tuesday, after which the new government will have to display both imagination and a desire to rethink a growth model based on high-end products. manufacturing, in a global economy where the greatest prosperity is generated in even more lucrative fields such as technology. But even with such winners on board, the race to forge a prosperous future will be fierce. What Bloomberg Economics Says: “Germany’s Ifo survey will provide more clues as to how the economy is doing. The economic situation has been weighed down by extensive restrictions on public life. The outlook is brighter amid expectations of a robust recovery driven by pent-up demand as the brakes ease following a resumption of the country’s immunization program. – For a full overview click here Banks in Indonesia, Nigeria, Kenya and New Zealand have set their rates. Click here to see what happened last week and below is our summary of what’s happening in the global economy.United States investors will look at April data on personal spending, durable goods orders and home sales to gauge the strength of the recovery at the start of the second. trimester. Several Federal Reserve policy makers are also expected to speak, including board member Lael Brainard. She is due to speak at a cryptocurrency conference, which will be in the spotlight after the market has been soaring in recent days. final views on the pandemic recovery in speeches on Monday and Wednesday. Tokyo CPI data is due later in the week as Japan continues to see price weakness despite global inflation picking up. Bank of Indonesia meets on Tuesday with no changes expected in its parameters monetary. The New Zealand central bank is also expected to keep QE rates and parameters unchanged on Wednesday, with Governor Adrian Orr likely insisting that the policy will remain stimulating for an extended period even if the economic outlook improves. for the first time in two and a half years. The BOK will update its forecast and likely maintain its policy while continuing to monitor the continued improvement in the economy. China’s central bank said on Sunday it would keep the yuan’s exchange rate at “basically stable levels.” After recent comments from its officials. suggested that the currency be allowed to appreciate and that authorities should eventually stop monitoring it.For more, read Bloomberg Economics’ full week for AsiaEurope, Middle East, AfricaIn a week cut short by a large part of the continent by a public holiday Monday, the most Important reports due outside of German data range from economic confidence in the euro region to a final reading of French gross domestic product for the first quarter. Several central bank officials ‘will be speaking across Europe, including at a conference on Tuesday at which Riksbank Governor Stefan Ingves and Philip Lane, chief economist of the European Central Bank. Meanwhile, Silvana Tenreyro and Gertjan Vlieghe of the Bank of England’s Monetary Policy Committee are also expected to deliver speeches.Hungary will likely keep interest rates unchanged on Tuesday before becoming the first central bank in Eastern Europe. European Union to begin monetary tightening next month to tame it. soaring inflation. On the same day, Czech and Slovak policymakers discuss the pros and cons of adopting the euro.As far as Africa is concerned, data from Sunday will likely show that Nigeria’s economic growth has remained close to zero in the past. first quarter after oil production and its purchasing managers index were weak. On Tuesday, the country’s central bank is expected to keep its policy rate unchanged, even with inflation at double the top of its target range, in a bid to spur an economic recovery. Meanwhile, monetary authorities in Kenya and Angola are also expected to meet on Wednesday and Friday. Hopes are fading for a summer recovery in tourism that would bring in much-needed foreign exchange and support the lira as concerns grow over dwindling central bank reserves. , inflation is again at the center of concerns in Latin America. Look for Mexico’s bi-weekly reading to show a year-over-year decline, easing some concerns about central bank tightening. Deputy Governor Irene Espinosa ruled out further easing and said Banxico could raise its key rate even before the Fed. In Brazil, forecasts call for the benchmark inflation reading in mid-month to exceed 7 %, well above target, followed by reports on The country’s widest measure of inflation and wholesale prices Mexico releases first-quarter production data on Wednesday, the minutes of the latest central bank meeting to be released on Thursday. The Colombian central bank will certainly keep its key rate at an all-time high of 1.75% on Friday. With the country’s inflation rate of 1.95% for April, the region’s five major economies are now all posting negative inflation-adjusted interest rates. until Germans vote in second paragraph.) More articles like this are available at bloomberg.com Subscribe now to stay ahead with the most trusted source of business information. © 2021 Bloomberg LP



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