Despite the contraction registered in the Germany's economy during the fourth quarter due to the weakening demand for exports from the motor of the Eurozone economy, finance minister Wolfgang Schäuble 'has no fear of a recession' in his country, according to the headline of an exclusive piece published this morning in Handelsblatt.

Keeping in mind that government forecasts expect growth of 0.2% in the first quarter of this year, Schäuble explained that leading indicators showed economic activity regaining its momentum in the second quarter. He added that growth would primarily be driven by German domestic demand and expected investment to "increase significantly".

Germany's unemployment did show a surprise drop today to 6.8%. Consensus had forecast the jobless rate to remain unchanged at 6.9%.

JM

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