German Economy Expected to Remain Stagnant

In the Euro zone, Germany is considered to be one of the strongest economies; that will either lead the region into or out of recessions. Recently, hopes have been rising that despite concerns about what is happening in Greece, the E.U. could be emerging from the worst economic conditions since 1982. However, information continues to provide evidence that a slow recovery is quickly emerging, with the release of German Economic Expectations, being the latest information to underscore such realities. According to the think tank ZEW (who conducts the survey), they reported that the index declined more than expected, coming in at 45.1 down from 47.2 in December. This was above the expectations of economists (which was for: a reading of 41.5) and the historical average (which is: 27.1). The biggest reasons why there was a decline in the numbers were the overall concerns that many consumers and businesses still have about future economic growth. The most notable would include: unemployment, a declining euro and fiscal deficits.

What all of this shows; is that while the E.U. does not appear to be on the verge of a massive economic recovery; it is not on the brink of going into a double dip recession. Instead, what will more than likely take place is: a period of flat to minimal growth. This will provide Germany and the different E.U. countries, with the conditions for long term economic growth. It also is following a similar pattern that has occurred after severe economic declines such as: 1934 or 1983.