Until recently, today's German GDP figures had been widely expected to show that the country had fallen into recession.
However, Claus Vistesenm, chief eurozone economist at Pantheon Macroeconomics, says he had "a sense that a small upside surprise was coming in today’s report given the solid September trade data, and upward revisions to the manufacturing numbers towards the end of Q3".
However, while there is no technical recession, he says Germany is "most definitely a very weak economy".
"In some sense, this is the 'worst' of both worlds for markets," he adds.
"Today’s data confirm that the German economy has now stalled, but the headlines are probably not dire enough to prompt an immediate and aggressive fiscal response from Berlin."
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