Finance

Finance

Eurozone GDP stable at 0.0 pct change in Q1

15 May 2012 14:19 (UTC +04:00)

Baku - APA-Economics. The German economy grew more than economists forecast in the first quarter as exports to emerging markets offset waning euro-area demand, APA reports quoting Bloomberg.

Gross domestic product in Europeâ€™s largest economy rose 0.5 percent from the fourth quarter, when it fell 0.2 percent, the Federal Statistics Office said in Wiesbaden today.

With the euro regionâ€™s debt crisis ravaging economies from Greece to Spain, German companies have shifted focus. Carmakers and their suppliers are benefitting from demand in faster- growing markets such as China, while falling unemployment and rising wages are stimulating spending at home. Business confidence rose for a sixth month in April after company earnings outpaced expectations in the first quarter.

â€œWith this morningâ€™s numbers, the German economy has not only avoided recession but could have even helped prevent the entire euro-zone economy falling into technical recession,â€ said Carsten Brzeski, senior economist at ING Group in Brussels. â€œOne thing is at least for sure: the German economy remains the powerhouse of the euro-zone economy.â€

The euro extended gains after the GDP report, rising to $1.2865 at 10 a.m. in Frankfurt from $1.2823 this morning.