Wednesday, 22 January 2014

Europe’s strong man takes a breather



In the last quarter of 2013 Germany saw little or no economic growth. A combination of Eurozone’s woes and a general slowdown in global growth impacted on business confidence and investment in Germany.

 

One bright spot was that German exports continued to hold up, thanks in large part to the competitive price edge afforded to them by a weaker euro.

Latest figures show that Germany's economy grew by a weaker-than-expected 0.4% in 2013 according to the first official estimates.

However, most economists expect the economy to bounce back in 2014 with growth of up to 2% compared to the Government’s forecast of 1.7%.

Improving economic conditions in the rest of the Eurozone and the US - both big export markets - should help Germany to grow and outperform the rest of the Eurozone for several years to come.

Germany's economy has remained a strong point of the Eurozone, and was credited with helping to haul the single currency bloc out of recession last year.

 

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