Euro Area Deficit Narrows; German Economic Outlook Bleak

Arthi Gupta
19 Jan, 2012
New York City

Euro area deficit narrowed in November and the German economy estimated to expand 1% in 2012. Dutch confidence remained flat in January and Norwegian banks tightened credit standards for businesses and consumers in the fourth quarter of 2011.

[R]3:00 PM Frankfurt – Euro area deficit narrowed in November and the German economy estimated to expand 1% in 2012. Dutch confidence remained flat in January and Norwegian banks tightened credit standards for businesses and consumers in the fourth quarter of 2011.[/R]

Euro-zone Deficit Narrows

The euro-zone current account deficit narrowed to a seasonally adjusted €1.8 billion in November from €6.6 billion a month ago, data from the European Central Bank showed today.

The current account gap reflects €11.4 billion deficit for current transfers, partially offset by €4.9 billion surplus for goods, €4.2 billion surplus in services and €0.3 billion in income.

German Economic Outlook

The German Industry Association estimates the economy to grow 1% this year. Exports are forecast to climb by around 3%.

Dutch Sentiment, Jobless Rate Flat

Consumer confidence in the Netherlands remained unchanged from the previous month in January, data released by the Central Bureau of Statistics showed today.

The consumer confidence index remained unchanged at -37 in January.

Separately, the agency said the Netherlands'' seasonally adjusted unemployment rate remained stable at 5.8% in December. The number of jobless persons was around 456,000 during the month.

In the year 2011, the average unemployed rate was at 5.4%, matching the rate recorded in 2010, the agency said.

Norwegian Banks Tighten Credit Standards

Norwegian banks tightened credit standards for households and corporations in the last quarter of 2011, according to the central bank''s quarterly bank lending survey published today.

Portuguese Output Price Inflation Slows

Portugal''s output price inflation slowed to 4.4% in December from 5.2% in November, data released by Statistics Portugal showed.

From a month ago, output prices fell 0.1% in December, reversing the 0.2% increase in November.

Polish Output Price Inflation Eases, Output Up

Poland''s producer price inflation slowed to 8.1% in December from an upwardly revised 9.1% in November, data released by the Central Statistics Office showed.

Producer prices in the mining and quarrying industry climbed 5.8% annually, while manufacturing prices gained 8.9% in December.

On a monthly basis, output prices gained 0.3% in December as against the revised 0.9% growth in November.

Separately, Poland''s industrial output rose 7.7% on an annual basis and on a monthly basis, industrial production fell 4.9% in December.