Strategist: German spending increases, optimistic about mid-term rise prospects

On March 12, Jinshi data, Nuveen’s senior macro strategist Laura Cooper said in a report that the increase in German spending will lead to an increase in the deficit, but after years of underinvestment, this may also promote the rise of the economy in the medium term. From a medium-term perspective, the improvement in Germany’s prospects will benefit Europe’s asset exposure. “It is important that with Germany having greater fiscal capacity to increase debt levels, the rise in momentum is enough to offset concerns about fiscal sustainability,” which should help improve Germany’s structural prospects in the medium term.