Bundesbank still confident Germany can return to growth
Germany, Europe's biggest economy, has gotten off to a somewhat shaky start to 2013, but that will not jeopardise its expected recovery later this year, the Bundesbank said on Monday. "The hesitant start to 2013 has not placed a questionmark over the anticipated rebound in economic activity," the German central bank wrote in its March monthly report.
After German gross domestic product (GDP) shrank by 0.6 percent in the last quarter of 2012, industrial orders and output data for January declined unexpectedly, dealing a blow to hopes for a rapid rebound.
Nevertheless, confidence and sentiment indicators are continuing to point upwards. The important Ifo business climate index, for example, "rose again in February, with export expectations in particular pointing upwards," the Bundesbank wrote. "Output expectations are similarly pointing to expansion. This is backed up by a strong rise in imports in January, following two unusually weak months.