German, eurozone economic growth revised down slightly

Share

German, eurozone economic growth revised down slightly

Germany's gross domestic product, which was the largest in Europe, rose a seasonally adjusted 0.4 percent though 2016's fourth-quarter.

"The data are all right - German growth is solid, and impulses came exactly from where we expected them to", Marco Wagner, an economist at Commerzbank AG in Frankfurt, told Bloomberg. Still, it marked a sharp rebound after the German economy barely expanded over the summer months.

Euro zone growth maintained the same quarterly pace as in the previous quarter.

The central bank is injecting billions of euros into the economy every month and has also implemented ultra low interest rates. Both of the countries' GDP statistics fell short of predictions by 0.1 percentage point, Bloombert said.

Greece, which is once again in the headlines over debt troubles, past year slipped out of recession, growing by 0.3%. The bloc's economy is expected to remain robust this year.

For the year as a whole, the country saw growth of 1.9 percent, the office said, confirming the provisional annual GDP result released in January.

This was due at least in part to a drop in Euro-Zone industrial output in December of 1.6% month/month - its sharpest fall since September 2012 - rather than the 1.5% predicted by forecasters.

Economic growth in the 19-country eurozone was steady in the second half of 2016, despite a series of shocks to confidence, including the U.K.'s vote to depart the European Union and terrorist attacks in Germany, France and Belgium.

Nonetheless, the latest data suggest that the outlook for Euro-Zone growth in 2017 is hardly positive, with rising energy prices an additional negative factor despite robust domestic demand in Germany.

Against this background, EURUSD might have been expected to weaken, given that it makes a tapering soon of the economic stimulus now provided by the European Central Bank less likely.

Share

Advertisement

© 2015 Leader Call. All Rights reserved.