German Growth Lowered to 3%; Euro Area Output Rises

Arthi Gupta
19 Oct, 2011
New York City

Euro area current account gap narrowed but construction output rose in August. The German economy estimated to slow to 3% growth in the current year. Iceland

[R]3:30 PM Frankfurt – Euro area current account gap narrowed but construction output rose in August. The German economy estimated to slow to 3% growth in the current year. Iceland’s jobless rate fell in the third quarter. Polish producer price index and output climbed in September.[/R]

Euro-zone Current Account Deficit Narrows

Euro-zone current account gap narrowed to a seasonally adjusted €5 billion in August from €6.8 billion in July, the European Central Bank said today.

The deficit in the income account widened to €1.2 billion, but the shortfall in current transfers fell to €7.6 billion.

The deficits for current transfers and income were partially offset by surpluses for services and goods.

The goods account showed a €0.4 billion surplus in August after logging €1.1 billion deficit in July. The surplus in services fell to €3.4 billion in August from €3.6 billion in July.

Euro Area Construction Output Rises

Construction production in the euro area increased 2.5% from a year ago in August compared to the 2% growth recorded in July, data released by statistics office Eurostat showed.

In EU 27, the growth in output slowed to 0.6% in August from 1.6% in July.

German Growth Outlook Lowered

The Chamber of Industry and Commerce (DIHK) estimates the German economy to grow 3% this year, slower than its previous estimate of 3.5%.

The industry association forecasted 2012 growth to slow to 1%.

Italy''s GDP Revised Up

Italian economy expanded more than initially reported during 2010, the statistics office Istat said while revising the data following the Eurostat''s new method.

The gross domestic product grew 1.5% in 2010, faster than the 1.3% reported in March. The economy shrank 5.1%, less than the previously estimated decline of 5.2%.

Iceland’s Jobless Rate Drops

Iceland''s unemployment rate dropped to 5.9% in the third quarter from 6.4% in the same period last year, data released by Statistics Iceland showed.

The number of jobless persons declined to 10,700 in the three-month period from 11,700 a year earlier.

Norway’s Bank Holds Rate

Norway''s central bank left its key policy rate unchanged at 2.25%.

The Executive Board decided that the key policy rate should be in the interval 1.75%-2.75% in the period to the publication of the next Report on March 14, 2012, unless the Norwegian economy is exposed to new shocks.

Polish PPI, Output Up

Poland''s producer price index increased 8.1% on an annual basis in September as against the upwardly revised 6.8% in August.

On a monthly basis, producer prices climbed 1.4% in September compared to the 0.6% increase in August, revised up from 0.4%.

Separately, Poland''s industrial production increased 7.7% from a year ago in September.

On a monthly basis, industrial output grew 13% in September.