Germany Dodges Recession, Sentiment Rises
May 24th 2013 7:10AM
Today, Germany confirmed that its first-quarter gross domestic product (GDP) rose by a mere 0.1%. There was some excitement that the largest economy in Europe had dodged a recession, which is something its neighbors cannot claim. However, that GDP growth number was so perilously close to zero that to call Germany's predicament a recession would not be far off the mark.
On the other hand, the dark cloud does have a silver lining. Sentiment about future business prospects in Germany did improve:
The Ifo Business Climate Index for industry and trade in Germany has risen again after two consecutive declines. The firms are clearly more satisfied with their current business situation than in the previous month. The outlook for future business is unchanged and slightly positive. The German economy remains on track in a challenging European environment.
The business climate indicators in manufacturing, wholesale and retail improved, though in construction they fell somewhat.
Filed under: 24/7 Wall St. Wire, Economy, International Markets