Germany well-placed for a steady recovery

The continued pick-up in survey measures of activity suggests that Q4's 0.7% rise in GDP was more than a blip. While growth is unlikely to be sustained at that pace, further steady increases are in prospect.

Germany is well-placed for a steady recovery, with consumers finally stirring and exports set to benefit from the weaker euro. But growth will be limited by worries about Greece. 

"We have revised up our forecast for German GDP growth this year from 1.5% to 2.0% and still expect a 1.5% expansion in 2016. But this will not be enough to transform the gloomier prospects for the rest of the euro-zone, particularly as the German Government resists giving more funds to Greece without strict fiscal conditions." - Capital Economics said in a report