German Q4 GDP Mixed; French Economy Grew More than Expected
THE TAKEAWAY: German GDP mixed -> France sees strong data -> authorities look to further stimulate growth -> Euro remains unaffected as focus remains on debt crisis
The German economy shrank by 0.2% in Q4 2011 compared to the third quarter, the German stats bureau said today. Economists had predicted a larger drop of 0.3%. The yearly number was weaker than the prediction, however, coming in at 1.5% versus the expected 1.8%. Previous quarterly and yearly numbers were modified upwards by a tenth of a percent.
The data came directly after France reported greater than expected economic growth in the same period. French GDP grew 0.2% on the month versus the -0.2% drop predicted by economists. The yearly number in France was 1.4% versus the expected 1.1%.
The Euro remained relatively unmoved by the data as investor focus remained primarily on the Eurozone debt crisis and developments in Greece. A ratification of the second Greek bailout package is expected to increase market confidence and pave the way for further economic growth in Europe.
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