Germany's central bank is expected, the economy of the country, to improve the "clear" in the second quarter -- the development of the wider eurozone, can improve its struggle, to get rid of the recession.
Germany's central bank, the Bundesbank) said on Tuesday that Europe's largest economy should be more effectively expand the weak in the first three months of this year. Germany part rose only 0.1% in the first quarter, because of the cold weather delays the construction season.
Said in its monthly report, will catch up with the construction activities. It also cited "there is reason to hope", the company will start to invest in machinery and equipment, to meet the growing demand for goods - in the key stage of any economic recovery. Industrial orders unexpectedly in March rose by 2.2%, instead of falling, analysts had expected.
So far, the report said, the company continue to hold the new investment, mainly because the product demand is weak - even though the investment and financing of the new condition that "very good". The European central bank cut key interest rates to a record low of 0.5%, on May 2, bank lending rates are still low.
Germany's central bank warned, however, the trouble too much government debt, other euro zone countries - Germany's main trading partners - means "the risk is still high." Although interest rates are low in Germany, they higher countries, such as Spain and Italy, including bank loans harder to get and charge customers more, because their own fiscal constraints.
Strong German economic growth is more likely to help the eurozone to climb out of recession. 17 countries of the monetary union's economy shrank 0.2% in the first three months of this year. Growth is painful, because the government spending cuts and tax increases, as far as possible to reduce debt. In the second half of this year the European central bank expected to gradually recover.



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