Bank Of Baku

German, French growth soars, signals above-par euro GDP

German, French growth soars, signals above-par euro GDP
# 13 May 2011 10:18 (UTC +04:00)
Baku - APA-Economics. Storming performances by the German and French economies in the first quarter highlight the yawning gap between the euro zone’s strong and weak and suggest the forecast for growth in the bloc is well under par.

Germany, Europe’s largest economy, grew by a startling 1.5 percent in the first three months of the year, data showed on Friday, with France only paling a little in comparison, growing by 1.0 percent.

Growth of 0.9 and 0.6 percent had been forecast respectively, leaving the 0.6 percent penciled in for the 17-nation currency bloc as a whole liable to be overshot, given Germany and France account for nearly half the region’s GDP.

The euro gained a lift from the German GDP numbers, rising 35 pips to the day’s high around $1.4273.

Both nations bounced back from a modest showing in the last quarter of 2010 when bad weather hit output.
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