The euro zone’s largest economy Germany might be powering ahead in terms of growth but the euro zone as a whole is heading towards a “catastrophe,” one economist warned on Friday.
Growth data for Germany released on Friday showed the economy had grown by 0.3 percent since the last quarter, marking a 1.1 percent increase year-on-year. In addition, the business climate index from German think-tank Ifo – which measures business confidence among 7,000 domestic firms – climbed to 109.3 in November, surpassing forecasts and October’s 107.4 reading.
The data followed euro zone business activity for November which indicated a growing divergence between Germany and the rest of the euro zone.
Both the German manufacturing and the services sectors performed better than expected while data for France, the euro zone’s second largest economy, showed a contraction.
via <a href=”http://www.cnbc.com/id/101220569″>’CNBC</a>
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