- Millan Mulraine, deputy head of U.S. research & strategy at TD Securities USA
The Euro zone's number one economy Germany is expected to grow, supported mainly by domestic consumption, according to Bundesbank. Last week Germany's statistics office reported that Europe's largest economy expanded by only 0.3% in quarterly terms in the first quarter, disappointing economists' expectations for stronger growth. The central bank predicts a sluggish growth of the German industry. Yet, an improving global economy along with a weak Euro should buoy German exporters particularly outside the currency bloc. Germany's central bank also expressed its disapproval with the reform process in Greece. Bundesbank said the Greek government would not be able to avoid bankruptcy without changing its course in negotiations. Meanwhile, according to European Commissioner Pierre Moscovici, the European Union and Greece have moved closer to mutual understanding on reforms to be implemented in a number of areas. However, progress still needs to be made on pensions and Greece's labour market.
Meanwhile, Italy's trade surplus fell in March as import growth outpaced increase in exports. The trade surplus shrank to a seasonally adjusted 3.89 billion euros, compared with 4.46 billion euros in February. Exports rose 1.8% from February, when it increased 2.6%. Meanwhile, growth in imports surged to 4%, up from 0.8%.
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