- "There is currently a clear economic recovery in Asia, Latin America, the large Central European countries, Europe apart from the zone euro, Japan, India, oil-exporting countries and even in the United States, despite the deterioration in households’ financial situation, Canada and Australia. The euro zone is an exception, and we actually expect sluggish growth in domestic demand in the euro zone due to:
• the slowdown in wages,
• the rise in household savings,
• offshoring,
• the reduction in fiscal deficits;"
- "The euro zone could therefore evolve towards the "Japanese model": weak wage incomes and household demand, growth due to exports and associated investments."
- "This new model would be a major trend break for many countries, would be favourable only in countries that have kept a large industry and exports and would also raise the question whether the distortion of income sharing at the expense of wage earners can be accepted."
Natixis Flash Economics 323 20100623
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