Thursday, August 14, 2014

Germany, the engine of the EU shrank by 0.2% in the second … – RTVE

Germany, the engine of the EU shrank by 0.2% in the second … – RTVE

RTVE.es

The German economy, engine of the European Union stopped short in the second quarter when GDP contracted by 0.2% compared to the previous quarter, according to data Provisional published Thursday by the Federal Statistical Office (Destatis). While in France , economic activity stalled again between April and June -repitiendo quarter- the data of the first, as announced by the French National Institute of Statistics (Insee).

Both data bind back into recession in Italy , so that three large economies of the euro area offer signs of weakness and reactivate the doubts about the end of the crisis in the eurozone , which saw growth stagnate between April and June.

Experts and the German Government had advanced in recent days that Europe’s largest economy had cooled relative to the first quarter, due to the uncertain recovery of the eurozone crisis and Ukraine . However, the rate of evolution of GDP is worse than expected by most analysts, who shuffled stagnation and not a drop

Paris.: “The growth is defective in France and Europe”

“By the weak performance of the euro , also affects the uncertainty arising from geopolitical events “says the German Ministry of Economics in its August monthly report published last Tuesday, where stresses, however, that the” positive trend “base” remains intact “, the market work remains “stable” revenue “up” and the trend of consumption “remains high”.

In contrast, the French government acknowledged Thursday that France not fulfill its objectives growth and deficits in 2014 , as stated the Finance Minister Michel Sapin, in a column published Thursday by the journal Le Monde .

” The growth is damaged, both in France and in Europe “acknowledges in his article the minister, who believes that” take better it probably will not be what you expect ” because it continues, “the truth is essential to take the measure to the facts, the will is needed to move the fronts and straighten the country.”

The German exports grew less than imports

The quarterly fall in the German economy – the first since the period January to March 2013, when it contracted by 0.4% – is explained by the contribution “negative” of foreign trade and investment reduction , as Destatis, who also now lowered first-quarter growth : the German country grew 0.7% instead of 0.8% advance .

exports rose less than imports between April and June, so that the external sector contributed negatively to growth, which is unusual in this economy.

investment especially under construction fell dramatically for the period from January to March, partly due to the mild winter months lived in those less interrupted normal activity in this sector. “One reason was probably the extremely warm weather, which caused higher growth rates in the beginning of the year ” indicates Destatis, who first applied the new methodology ordered by Brussels to calculate the GDP.

The setbacks could not be offset by a private consumption continued to improve and public sector spending, which rose slightly compared to first quarter of this year.

compared to the second quarter of 2013 , the German economy grew 0.8% between March and June, well below the 2.5% year which recorded between January and March. Despite that, the Executive Angela Merkel confident of meeting its estimates and maintains growth forecast at 1.8% for the whole year.



public expenditure and household investment offset the fall in France

In France, between April and June last recorded a drop in business investment (-0.8% from the first quarter) and a deficit in foreign trade , which subtracted 0.1 percentage points of GDP to the gala economy.

In addition, the production of goods and services declined by 0.1% and “the production of manufactured goods declined again (-1.0%) in almost all sectors of the economy,” according to Insee.

These drops were offset by increases in public expenditure (0.5% compared to January-March) and household consumption (0.5%).

With this data, France accumulated growth of 0.3% in the first six months of the year.

The French economy grow half as much in 2014

So the Finance Minister Michel Sapin, has admitted that the advance of the French economy at the end of the year will be “on the order of 0.5 % “against a target of 1% that the government defended so far, admits Sapin, who not expected to grow” much higher than 1% “in 2015.

public deficit in France at the close of 2014 will be “more than 4%” of the gross domestic product (GDP), compared to the previous forecast of 3.8%, the French minister added.

In his column, Sapin says the French government of Prime Minister Manuel Valls, come “all the way” with the so-called “covenant of responsibility ” that expects to save 50,000 million euros in three years, but warns that “ many” of France’s European partners not reach the goals set , so that calls for Brussels continental reaction .

“The truth is this: where a sluggish growth, low inflation and reduced deficits even weaker has its origin in French itself causes, but also in situations that can only provide a comprehensive European response, “says the head of the Finance galas.

In this regard, calls upon the European Central Bank (ECB) to implement” a monetary policy adapted to the situation exceptional “living the euro zone, and the new European Commission ” reorientation “of EU policies .

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