German economic growth advanced more than the predicted level of economists last quarter. This led to the Euro zone recovery.
The Federal Statistics Office revealed that the economy boosted growth to 0.8 % from 0.4 % in the previous quarter. Economists predict a 0.7 % growth in Germany. While in France, the economy unpredictably stagnated in the period and in the case of Italy, the economy contracted by 0.1 %.
The statistics office further revealed that Germany’s growth was motivated by domestic consumption by private households and the government. There was an advancement in the investment in construction and machinery.
While in France, the spending by households and investment by business are strangled by the deficit-cutting and tax increases amounting to more than 70 billion euros since 2011. The consumer spending slumped down by 0.5 % in the first quarter. Making a third-straight quarterly decline, investment spending declined by 0.9 %.
Data revealed that the Italian economy slumped by 0.1% against the prediction of 0.2% growth. Data revealed that the Dutch economy slumped down by 1.4 % in the fourth quarter. Data also showed that the Austrian economy advanced by 0.3 %. The euro moved down by 0.3 % against the dollar to $1.3668 as of 9:05 a.m. London time.
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