The cyclical outlook for the German economy has dimmed. Enterprises are cutting back their investment and hiring fewer new staff. The main drags are not only the adjustment recessions in some euro-area countries but also the slowing of the global economy. Nonetheless, in its latest projection the Bundesbank does not foresee a protracted slowdown but instead anticipates a return to a growth path soon. This is predicated on the assumption that the global economy regains momentum and the euro-area reform process progresses further. However, given the difficult economic situation in some euro-area countries and ... (full story)