German economy to return to growth, says Bundesbank German economic growth is key to a recovery in the eurozone Continue reading the main story Eurozone crisis What if Greece quits the euro? Q&A: Greek debt crisis Are euro summits a waste of time? Compa

The Bundesbank’s monthly report for February forecast that the rest of 2013 will see a gradual pick-up in activity in Europe’s biggest economy.

If the economy shrank again in the current quarter, Germany would technically be in recession, defined as two quarters of contraction.

The economy shrank by 0.6% in the last three months of 2012.

“As it currently looks, a plus in economic output can be expected in the first quarter of this year,” the Bundesbank said.

The report continued: “For the rest of this year, the economy is expected to pick up gradually, even if the external economic environment will provide no trigger for a sharp surge in demand.”

Although Germany’s economy has held up better than most of those in the eurozone, its recent slowdown has fuelled worries about Europe’s recovery.

The purchasing power of German consumers and industry is seen as key to the recovery of the region.

Germany’s gross domestic product slowed throughout 2012. GDP grew by 0.5% in the first quarter of 2012, and then by 0.3% in the second quarter and 0.2% in the third quarter.

With a contraction of 0.6% in the final three months of last year, the economy expanded by just 0.7% in 2012, compared with 3% in 2011.

The 17-nation eurozone fell deeper into recession at the end of 2012.

The European Central Bank has forecast that the eurozone will shrink 0.3% in 2013, and only start to recover later in the year.

Reprinted from BBCnews

Leave a Reply

Reset password

Enter your email address and we will send you a link to change your password.

Get started with your account

to save your favourite homes and more

Sign up with email

Get started with your account

to save your favourite homes and more

By clicking the «SIGN UP» button you agree to the Terms of Use and Privacy Policy
Powered by Estatik
error: Content is protected !!