Consumer spending may be on the rise in the Euro-zone as indicated by the increase in retail sales this year, and more specifically this August. Sales rose by 0.7% from July but were still 0.3% lower than last year. It is evident that the financial crisis is still luring but these figures indicate a sign of slow but steady recovery.
Consumer spending had been declining since mid-2011. The July and August 2013 figures suggest further recovery in the future. However, retail sales are still below the rates seen before the 2008 financial crisis hit.
Without a doubt Germany has had the fastest growth with Italy notably accounting for its fastest growth in two years. On the other hand, Spain’s economy contracted.
What does the contracting of Spain’s economy signify? Post your comments below!
A poll of 18 economists by The Wall Street Journal indicates India’s economy expanding by less than 5% between April and June 2013. This would mark the third consecutive quarter of sub-5% growth in the country.
The government will release the GDP data on Friday, August 30, 2013. Currently, the estimates by the economists range from as high as 4.9% and as low as 4.0% with an average of 4.6% growth.
Economist Glenn Levine said, “The instability created by the weak central government continued to weigh on confidence and demand.”
What do you think is causing India’s GDP to remain stagnant? Post your views in the comment section below!
U.S. exports may be ready to recover after a downturn in the Fall. German imports have rebounded in January 2013. There is hope that increased trade will shrink Germany’s trade surplus. From October 2012 to December 2012, Germany’s economy shrank by 0.6%.
German domestic demand is anticipated to play a large role in boosting the Germany and Eurozone economy this year. Since currently borrowing costs for businesses are purposefully low, perhaps German demand will increase.
While countries around the world like the United States and those in the European Union are suffering, Thailand has reported a gross domestic product growth of 18.9% compared to last year. This growth can be attributed to the devastating floods in 2011 which diminished both production and consumption. By comparison, the current investment in rebuilding supports growth.
On Monday, February 18th Thailand’s government reported that the GDP growth for 2012 was 6.4%, with expectations for 4.5 %– 5.5 %growth in 2013. Whether the growth will mainly be in manufacturing or in services (such as medical tourism) is a key question.