Goldman Sachs has cut its Germany 2013 GDP forecast from 0.4 per cent to 0.1 per cent. Weaker than expected German GDP in the first quarter has prompted concerns that Europe is not as close to recovery as had been hoped.
“The core is now as rotten as the periphery,” commented Hector McNeil, chief exec of City firm Boost ETP. “The distinction between the two is now all but meaningless, as even German growth has slipped to negligible levels and France’s economy is wilting faster than President Francois Hollande’s re-election prospects.”
Germany, often seen as the powerhouse economy of the euro area, saw its economy grow by just 0.1 per cent in quarter one, the estimates showed – having shrunk by 0.7 per cent the previous quarter.