- Johannes Gareis, an economist at Natixis
German industrial production unexpectedly decreased in March, adding to signs that Europe's powerhouse remained vulnerable to global economic headwinds. Industrial output declined 0.5% in the reported month following stagnation in February, while production climbed 0.1% from a year earlier. A number of economists scaled back their expectations on economic growth of the Euro zone's number one economy. Even though German gross domestic product growth is predicted to remain sturdy in the first quarter, supported by robust private consumption, it will not be as strong as in the final quarter of 2014, when Germany grew by a quarterly rate of 0.7%, or by 2.8% annualized. However, according to the European Commission's forecast, Germany's economy will continue outperforming the Euro zone, expanding 1.9% this year and 2% in 2016.
A separate report showed German imports rose more than exports in March. Seasonally adjusted exports climbed by 1.2% on the month in March, while imports increased by 2.4%, according to the Federal Statistics Office. As a result, Germany's trade surplus narrowed to 19.3 billion euros from 19.7 billion euros. Measured on an annual basis, Germany exported goods and services soared 12.4% to 107.5 billion euros, while imports hit 84.5 billion euros, a 7.1% increase.
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