Germany slows euro zone recession in Greece – Reuters Germany

       

– by Rene Wagner and Klaus Lauer

       

Berlin / BRUSSELS (Reuters) – The euro zone is no longer growing as strongly as in nearly two years in spite of a dizzy spell in Germany. The surprisingly good economic situation in the other large Member States France, Italy and Spain had the gross domestic product from January to rise by 0.4 percent by March. Falling gasoline prices triggered a surge in consumption, while the weak euro anschob exports, as is apparent from the data published by the statistics office Eurostat on Wednesday. When brake is turned Germany, where growth more than halved. The worst is Greece since that fell back into recession due to the unresolved debt dispute.

       

In Germany the increase was only 0.3 percent, after it had reached even to the end of 2014 0.7 percent. The export-dependent economy is suffering, especially among the shaky global economy. Exports increased noticeably slower than imports, whereby the foreign trade growth slowed net. “This is mainly due to the development in the emerging markets,” said the German Ministry of Economics. Go there about 40 percent of German exports. In China, Russia and Brazil, it is under way but not round.

       

The rest of the German economy remains below its consumption: Households and the State would have increased their expenditure, the Federal Statistical Office. Because of record employment, rising wages and low inflation, the money is loose among consumers. The investments to be laid. “Both in buildings as well as in equipment has been investing significantly more.” The construction boom is fueled by the continued low interest rates.

        
       

There are no great leaps EXPECTED

       

The Federal Government trusts the German economy for the time being to no great leaps. “The current economic picture suggests a continuation of the upswing at a moderate pace,” said the Ministry of Economy. It says 2015 and 2016 ahead of a respective growth of 1.8 percent, after it had in 2014 only 1.6 percent. Foreign trade in the future should come back positive impulses: “The depreciation of the euro leads to improved price competitiveness.” The economy Isabel Schnabel warned, however, to expect too much. “The policy should not rest that the forecasts in 2015 were significantly increased by many in recent times.”

       

The EuroEUR = devalued one fifth against the dollar because of the extremely loose monetary policy of the European Central Bank (ECB) within one year. That makes goods more expensive overseas and cheaper competitors in the monetary union. “The recovery is supported mainly by the depreciation of the euro and declining energy prices”, Governing Director Benoit Coeure said, referring to the monetary union. “However, both effects are likely to abate soon.” Thus, the euro has appreciated in the past two months by more than seven percent to US currency, while a barrel of oil costs $ 68 a lot more than at the beginning almost 50 Dollar – bad news for consumers.

       

As Konjunkturlok This time proved to the French economy. They not only grew twice as fast as the German, but also as strong as the past two years thanks to buying joyful consumer with 0.6 percent no longer. According to economists of the good start to the year but little change in the overall bleak situation. “The recovery will not be strong enough to push the high unemployment rate in France significantly,” said Diego Iscaro from research firm Global Insight His. Currently, this is 10.6 per cent, in Germany, by contrast to the EU standards only 4.8 percent. Continued …