Danger ahead if the bond bubble bursts

The German economy is picking up but the benefits to other parts of the eurozone will be unevenly distributed.

Germany’s economic recovery appears to be gathering pace, surprising experts in government-owned financial institutions such as the International Monetary Fund and the Organisation for Economic Co-operation and Development. On Friday (1 February), following robust business-outlook surveys earlier in the week, Eurostat, the European Union’s statistics office, reported that Germany’s seasonally adjusted unemployment had fallen to only 5.3% in December. 

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