Eurozone economic data point to the contraction of the European GDP in the fourth quarter.
A third consecutive monthly decline was recorded in the volume of industrial production in the Eurozone, the German economy contracted by 0.5% in the fourth quarter, and the volume of bad debts in Spain keeps breaking the record.
Positively, we’ll note the increase in the Eurozone’s exports in November (+0.8%). The relatively sharp appreciation of the Euro could harm the recovery of the Economicexports, as marked by the Eurogroup chairman, Jean-Claude Juncker, that the Euro currency is dangerously high.
On the other hand, one of the ECB members said he believes the current level of the Euro is not expected to threaten the European economy.
The batch of data published over that past week indicates an increase in the rate of growth of the Chinese economy.
GDP in the fourth quarter rose by 7.9% year over year, compared to expectations for +7.8%, and a growth of +7.4% in the third quarter.
The recovery in the growth rate in the fourth quarter was driven by a jump in infrastructure spending by the government, which began to grow in mid-2012, when concerns regarding the depth of the economic slowdown started to grow.
Exports stabilized towards the end of the year, and China’s large trade surpluses contributed to the positive momentum.
Additional data released on Friday pointed to an increase of 20.6% in the investment in fixed assets in 2012, compared with an increase of 20.7% (annual rate) on the first 11 months of the year.
The industrial production rose by 10.3% in December and retail sales rose by 15.2% in December, vs. 14.9% in November.