Epsilon Capital Management's First Quarter European Economic Round Up/blogger/redgage - 1 views
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jackson ysmael on 19 Aug 12Data released between January and early April painted a mixed picture of how the German economy fared during the first quarter of 2012. Some of the reported figures, such as those related to industrial output and manufacturing activity, indicated that Europe's largest economy may have lost steam during the first three months of this year due to an unusually cold winter, rising oil prices, as well as weaker demand for its exports from Euro-zone trading partners and China. However, other statistics, like trade balance, gave a more optimistic view and hinted that the country likely averted "technical recession" in the first quarter. Germany's GDP contracted 0.2% in the fourth quarter of 2011 compared to the previous quarter. If the first quarter of 2012 too reports a fall in GDP, the two consecutive quarterly declines will mean Germany is now in "technical recession." Whether or not Germany avoided recession in the January-March period is a key topic of discussion for economists and the financial media, at least until the actual GDP figures for the period are reported later this quarter. This is because the country, which remains the primary driver of the Euro-zone economy, had, until December 2011, showed several signs of resilience despite the slowdown in the region. Unfortunately for Germany, some of those signs do not look as encouraging now.
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