'German remains in strong recovery'

21 Mar, 2007

Rising foreign demand has more than offset the negative impact of the strong euro on Germany's exporters and Europe's largest economy remains in a strong recovery, the Economy Ministry said on Tuesday. The global economy has begun 2007 in good form, the ministry added, though it said there was a risk Japan could slide back into deflation.
"Irrespective of the long-standing upward direction of the economic cycle, the Japanese economy again faces the threat of slipping back into deflation," the ministry said in a report. The Japanese government has set a goal of getting out of price-eroding deflation before the end of March. Germany remained on a growth path.
"The German economy remains in a strong upswing," the ministry added. "The continued strong growth of third party (non-EU) countries has apparently until now more than compensated for the dampening effect from the strong euro."

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