ECB tries to keep a brave face

The Eurozone economy is testing the mettle of European Central Bank policymakers, who need to judge whether a multitude of uncertainties are crystallising into serious risks to growth.

Officials are putting faith in domestic resilience and say temporary factors that dragged on the third quarter should fade. The broad message: after a period of youthful exuberance, it’s more a case of the expansion hitting middle age than moving into terminal decline.

Recent numbers paint a grim picture, with growth slowing and Germany, the euro area’s biggest economy, shrinking for the first time since 2015.

Previous cycles suggest the expansion may have the legs to power through the headwinds. According to ING, it’s still relatively young by historic standards.

For now, policymakers are sticking to the glasshalf-full view.