Latest news with #Palmas
Local Germany
08-05-2025
- Business
- Local Germany
German factory output and exports rise, but US tariffs cloud outlook
Germany's industrial production jumped more than expected in March, while exports also rose, providing a rare boost for Europe's largest economy — even as looming US tariffs raise fresh concerns. Factory output increased by 3.0 percent compared to the previous month, according to preliminary data released on Thursday by federal statistics agency Destatis. This follows a sharp decline in February and exceeds analysts' forecasts of a 0.75 percent rise. The growth was driven by key sectors including automotive and pharmaceuticals. Exports climbed 1.1 percent month-on-month, largely fuelled by higher shipments to the United States ahead of new tariffs introduced in April. That figure was in line with expectations. Tariff fears and economic uncertainty remain Franziska Palmas, senior Europe economist at Capital Economics, said the rise in industrial output pointed to stabilisation in Germany's manufacturing sector in recent months. However, she warned that the March boost was likely due to companies rushing to stockpile goods before the US imposed so-called 'Liberation Day' tariffs. 'And with the hit from US tariffs likely to be felt before long, and any support from the new government still some months away, we think a further improvement is unlikely,' Palmas said. Advertisement Germany's economy has contracted for the past two years due to sluggish manufacturing, weak global demand and elevated energy costs. Economists fear that trade tensions with the United States could tip the country into a third year of recession. Surplus grows despite import drop Exports totalled €133.2 billion ($150.5 billion) in March, Destatis said, while imports dropped by 1.4 percent to €112.1 billion. That left Germany with a trade surplus of €21.1 billion for the month.
Yahoo
30-04-2025
- Business
- Yahoo
Eurozone economy grows more than expected despite US tariff turmoil
The eurozone economy expanded more than expected at the start of the year, official data showed on Wednesday, despite US President Donald Trump's tariffs but global trade tensions threaten more pain and near stagnation in 2025. The EU's official data agency said the 20-country single currency area recorded growth of 0.4 percent over the January-March period from the previous quarter. The figure was higher than the 0.2 percent forecast by analysts for Bloomberg, and comes after the eurozone economy grew by 0.2 percent in the final quarter of 2024. The 27-country European Union economy expanded by 0.3 percent, after 0.4 percent between October and December. The better-than-expected data appears to be linked to advance purchases in the United States, before Trump's tariffs came into effect. But for the year as a whole, the outlook remains lacklustre, according to experts. Trump on April 2 slapped sweeping 20 percent levies on a majority of European goods before announcing a 90-day pause, but a worldwide 10-percent levy rate remains. If Brussels and Washington fail to reach an agreement, the higher tariffs will kick in, unleashing chaos and a painful trade war for Europe. But Trump's 25-percent tariffs on steel, aluminium and auto imports also remain. "The economy started the year on a stronger footing than we expected and activity surveys suggested," said Franziska Palmas, senior Europe economist at London-based Capital Economics. "Nevertheless, we still expect growth to slow sharply in the next six months as the US tariffs introduced in April will hit activity and any boost from German fiscal stimulus will mostly be felt next year," Palmas added. - Faster German expansion - Several European companies shipped a larger number of goods at the start of the year to avoid Trump's higher tariffs. For example, Ireland's exports to the United States jumped 210 percent in February to nearly 13 billion euros ($14.8 billion), with 90 percent of those being pharmaceutical products and chemical ingredients. The eurozone's strong performance in the first quarter "is partly due to the 3.2 percent q/q increase in GDP in Ireland, where GDP tends to be very volatile and the boost from front-running of US tariffs is likely to have been quite big", Palmas said. Europe has been mired in stagnation for two years, held back especially by soaring energy costs following Russia's invasion of Ukraine in 2022. The International Monetary Fund this month cut its annual growth forecast for the eurozone by 0.2 percentage points to 0.8 percent in 2025, as it expects trade tensions with the United States to hurt Europe. Among the major economies, Spain stood out with growth of 0.6 percent in the first quarter compared to the previous three-month period. But France, hampered by political instability and a planned austerity programme, weighed down the eurozone, with growth of only 0.1 percent between January and March. Germany, Europe's biggest economy, also grew more than expected, by 0.2 percent in the first quarter of the year compared to the previous quarter. aro-raz/lth Sign in to access your portfolio
France 24
30-04-2025
- Business
- France 24
Eurozone economy grows more than expected despite US tariff turmoil
The EU's official data agency said the 20-country single currency area recorded growth of 0.4 percent over the January-March period from the previous quarter. The figure was higher than the 0.2 percent forecast by analysts for Bloomberg, and comes after the eurozone economy grew by 0.2 percent in the final quarter of 2024. The 27-country European Union economy expanded by 0.3 percent, after 0.4 percent between October and December. The better-than-expected data appears to be linked to advance purchases in the United States, before Trump's tariffs came into effect. But for the year as a whole, the outlook remains lacklustre, according to experts. Trump on April 2 slapped sweeping 20 percent levies on a majority of European goods before announcing a 90-day pause, but a worldwide 10-percent levy rate remains. If Brussels and Washington fail to reach an agreement, the higher tariffs will kick in, unleashing chaos and a painful trade war for Europe. But Trump's 25-percent tariffs on steel, aluminium and auto imports also remain. "The economy started the year on a stronger footing than we expected and activity surveys suggested," said Franziska Palmas, senior Europe economist at London-based Capital Economics. "Nevertheless, we still expect growth to slow sharply in the next six months as the US tariffs introduced in April will hit activity and any boost from German fiscal stimulus will mostly be felt next year," Palmas added. Faster German expansion Several European companies shipped a larger number of goods at the start of the year to avoid Trump's higher tariffs. For example, Ireland's exports to the United States jumped 210 percent in February to nearly 13 billion euros ($14.8 billion), with 90 percent of those being pharmaceutical products and chemical ingredients. The eurozone's strong performance in the first quarter "is partly due to the 3.2 percent q/q increase in GDP in Ireland, where GDP tends to be very volatile and the boost from front-running of US tariffs is likely to have been quite big", Palmas said. Europe has been mired in stagnation for two years, held back especially by soaring energy costs following Russia's invasion of Ukraine in 2022. The International Monetary Fund this month cut its annual growth forecast for the eurozone by 0.2 percentage points to 0.8 percent in 2025, as it expects trade tensions with the United States to hurt Europe. Among the major economies, Spain stood out with growth of 0.6 percent in the first quarter compared to the previous three-month period. But France, hampered by political instability and a planned austerity programme, weighed down the eurozone, with growth of only 0.1 percent between January and March. Germany, Europe's biggest economy, also grew more than expected, by 0.2 percent in the first quarter of the year compared to the previous quarter.
Int'l Business Times
30-04-2025
- Business
- Int'l Business Times
Eurozone Economy Grows More Than Expected Despite US Tariff Turmoil
The eurozone economy expanded more than expected at the start of the year, official data showed on Wednesday, despite US President Donald Trump's tariffs but global trade tensions threaten more pain and near stagnation in 2025. The EU's official data agency said the 20-country single currency area recorded growth of 0.4 percent over the January-March period from the previous quarter. The figure was higher than the 0.2 percent forecast by analysts for Bloomberg, and comes after the eurozone economy grew by 0.2 percent in the final quarter of 2024. The 27-country European Union economy expanded by 0.3 percent, after 0.4 percent between October and December. The better-than-expected data appears to be linked to advance purchases in the United States, before Trump's tariffs came into effect. But for the year as a whole, the outlook remains lacklustre, according to experts. Trump on April 2 slapped sweeping 20 percent levies on a majority of European goods before announcing a 90-day pause, but a worldwide 10-percent levy rate remains. If Brussels and Washington fail to reach an agreement, the higher tariffs will kick in, unleashing chaos and a painful trade war for Europe. But Trump's 25-percent tariffs on steel, aluminium and auto imports also remain. "The economy started the year on a stronger footing than we expected and activity surveys suggested," said Franziska Palmas, senior Europe economist at London-based Capital Economics. "Nevertheless, we still expect growth to slow sharply in the next six months as the US tariffs introduced in April will hit activity and any boost from German fiscal stimulus will mostly be felt next year," Palmas added. Several European companies shipped a larger number of goods at the start of the year to avoid Trump's higher tariffs. For example, Ireland's exports to the United States jumped 210 percent in February to nearly 13 billion euros ($14.8 billion), with 90 percent of those being pharmaceutical products and chemical ingredients. The eurozone's strong performance in the first quarter "is partly due to the 3.2 percent q/q increase in GDP in Ireland, where GDP tends to be very volatile and the boost from front-running of US tariffs is likely to have been quite big", Palmas said. Europe has been mired in stagnation for two years, held back especially by soaring energy costs following Russia's invasion of Ukraine in 2022. The International Monetary Fund this month cut its annual growth forecast for the eurozone by 0.2 percentage points to 0.8 percent in 2025, as it expects trade tensions with the United States to hurt Europe. Among the major economies, Spain stood out with growth of 0.6 percent in the first quarter compared to the previous three-month period. But France, hampered by political instability and a planned austerity programme, weighed down the eurozone, with growth of only 0.1 percent between January and March. Germany, Europe's biggest economy, also grew more than expected, by 0.2 percent in the first quarter of the year compared to the previous quarter.
