- Mario Draghi, President of European Central Bank
Europe's largest economy, Germany, grew by a quarterly rate 0.3% in the three months through March, down from 0.7% growth in the fourth quarter. Domestic demand supported Germany's economy in the first quarter, as both private consumption and investment spending rose. Household consumption was up 0.6% as consumers felt upbeat due to an improving labour market, rising wages and lower energy prices, while government consumption also climbed by 0.7%. However, weak exports and falling inventories suppressed growth in the beginning of the year after an extraordinarily strong fourth quarter. Meanwhile, German economy captains remained optimistic in May, as Ifo Business Climate index fell less than expected. The headline measure of the mood in German business circles slid to 108.5 in May, slightly below the 108.6 recorded in April, whereas analysts had expected a decline to 108.3. Meanwhile, the Current Assessment sub-index, measuring current conditions in the Euro zone's number one economy, came in at 114.3 points, following the previous month's figure of 113.9. Moreover, the Ifo Expectations Index, showing firms' projections for the next six months, booked 103.0, from 103.5 in April.
Meanwhile, Mario Draghi, ECB President reiterated European governments should step up efforts to overhaul economies, reform labour markets and contribute to economic flexibility.
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