CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

German economy slower than expected while France sees 8220 spectacular 8221 results

Article By: ,  Financial Analyst
May 13, 2015 3:26 PM

The German economy has slowed down this quarter – more than expected by analysts.

Gross domestic product in Europe's largest economy has slowed to 0.3 per cent from 0.7 per cent. Consensus estimates had been 0.5 per cent growth reports the Financial Times.

Despite recent optimism about the German economy, this slow down could raise doubts about the future. Recently, the German government lifted its 2015 forecast from 1.5 per cent to 1.8 per cent – while private sector economists had raised their targets to two per cent or more.

The German statistics office says that German domestic demand grew strongly in the first quarter, with both household consumption and business investment up. However, foreign trade has held back the GDP and an increase in imports has created an imbalance with exports.

France

While Germany's economic figures were worse than expected, France beat most expectations for its first quarter.

The French economy is expanding at the fastest pace in nearly two years and the Financial Times says falling inflation has boosted consumer spending.

Consumer spending went up by 0.8 per cent from 0.1 per cent. Households are buying 1.4 per cent more manufactured goods – including cars, according to statistical agency Insee.

Experts believe that the improved figures for France could help to decrease the country's unemployment rate, which currently stands at more than ten per cent. Prime Minister Manual Valls said he hopes the GDP could grow by as much as 1.5 per cent this year, and that would help boost jobs.

Economist Philippe Waechter agrees. He called France's financial results a "spectacular performance" and thinks there's good news ahead for the French job market. 

"The goal of more than one per cent growth for this year should be exceeded. This will be positive for employment," he said.

However, some experts are less optimistic. Economist Iscaro Diego told the Financial times that the strong growth was unlikely to make a dent in unemployment. 

"We expect the labour market to remain a drag on the recovery, although we also project employment growth to pick up gradually during the second half of 2015," he explained.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024