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Germany grows, France stagnates

Today’s data showed the divergence between French and German economies keeps on growing. German economic growth accelerated more than forecasted in the first quarter, helping the euro zone’s economy to offset the unexpected stagnation in France.

German GDP rose by 0.8% in Q1 vs. 0.4% growth in Q4 2013, statistics shows, while the economists expected a 0.7% growth. Earlier data showed France, the euro zone’s second largest economy, showed a zero GDP growth in Q1 after growing by 0.2% in Q4.  

“The outlook for the German economy remains good,” UniCredit economists say. “There is a lot of pent-up demand in investment and with low inflation and growing wages we have the perfect environment for strong private demand.”


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