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Macroeconomic Perspectives – May 23, 2014

German GDP, Ifo results. Germany’s economy grew at a 0.8 percent clip in the first quarter, its strongest showing in three years. But there are clouds on the horizon for the primary engine of the euro zone economy. The May Ifo business sentiment index declined to 110.4 (111.2 April), lowest of the year. That suggests that a slower economic performance is on tap for Germany in the second quarter and that could raise the odds or at least the expectations that the European Central Bank will act.

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