"With these numbers, the secret hope that fourth quarter growth was actually better than suggested by the Statistic Office's first estimates are fading away."
- Carsten Brzeski at ING
The ECB now remains in a "wait-and-see" mode and will wait for the updated projections of its analysts in March to make another rate cut or stay pat on its policy as they did last week.
While the inflation is still weak and far below the ECB's official target, the region's largest economy, Germany, is sending positive signs. During the whole 2013, the economy posted the record-high trade surplus, even though exports momentum tailed off in the second half of the year. According to Destatis, the trade surplus stood at 198.9 billion euros, accelerating from 189.9 billion euros a year earlier. While shipments to the wider EU inched higher 0.1%, exports to the 18-nation bloc turned lower 1.2%. Separately, during December exports decreased 0.9%, outpacing a 0.6% decline in imports. Europe's powerhouse was blamed for its constantly booming trade surplus, as critics said German's prowess comes at the expense of other, weaker members of the currency bloc. Berlin, however, dismissed these arguments, by saying it is a result of strong German competitiveness.
The outlook for 2014, however, is mixed, taking into account strengthening export markets in developed countries as well as weaker demand from emerging markets.
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