Yesterday’s report on factory orders in Germany was unexpectedly low as exports to other eurozone countries fell by -8.6%. Today, the country’s Economy Ministry reported that industrial output rose more than expected in January, up 1.6% month-over-month, much better than the forecast for 1.1% growth.
What today’s numbers seem to indicate is that the country’s domestic economy is strengthening and that Germany is well-positioned to avoid a significant recessionary downturn regardless of falling demand for its products from its eurozone neighbors.
The eurozone economy is expected to contract by -0.3% this year, while Germany’s economy is forecast to rise by 0.6%. That’s well below 2011 growth of 3% and much of the decrease is due to the austerity measures being imposed on other eurozone nations, which leaves them with less cash to spend on imported goods from Germany.
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