New data for German economy

01-08-2011 09:15 BJT Special Report:Vice Premier Li Keqiang Visits Europe |

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Also in Germany a series of data has been released on the country's economy. It shows strong growth in domestic demand but lower retail figures.

New figures from Germany paint a mixed picture about the state of Europe's largest economy.

The trade surplus has narrowed to 11.8 billion euros, around 15.3 billion U.S dollars, with import figures up by a forecast beating 4.1 percent.

That figure points to strong growth in domestic demand, however retail figures for the same month were surprisingly lower, down 2.4 percent.

Reuters Macro Economics editor Nick Edwards has been looking at the data and says it presents a positive picture.

Nick Edwards, Reuters Macro Economics editor, said, "Well the most important thing to look at here is the import data number, because that's really indicative of what's happening in the broader German economy. Those imports are going to be re-exported and there's also a sense there that the German consumer is going to be buying. So whilst the retail sales number's dipped, look at the import data because that is the broader sense of what's happening in the German economy.''

Exports, often considered the backbone of the country's economy, were also up by 0.5 percent which was slightly lower rise than forecast.

Other countries in the euro zone are eyeing how much the Germans are spending hoping it'll help their own ailing economies.

Nick Edwards, Reuters Macro Economics editor, said, "Well the bigger picture is that Germany is the core of the euro zone economy and is the engine of growth. It's manufacturers are wanted around the world and you see that through rising exports and you see an economy that is developing a robust domestic sector to go with that.''

Whilst many other countries continue to grapple with their debt crises, Germany is emerging rapidly from its deepest post war recession.

It's economy is expected to have grown by between 3 and 4 percent last year, signalling it's in full swing with strong domestic demand underway.

Editor:Zhang Pengfei |Source: CNTV.CN