German wage increase stands to boost eurozone exports, ease recession
GERMAN wages rose at their fastest pace in almost four years at the start of 2013 and eurozone exports jumped in April, giving the bloc a basis for a recovery from its long recession, reports Reuters.
The EU's statistics office, Eurostat, revealed that nominal hourly labour costs rose 3.9 per cent in Germany in the first quarter, faster than the overall eurozone rate of 1.6 per cent. It was also Germany's biggest jump since the first three months of 2009.
Higher wages in Europe's largest economy should mean German shoppers have more money to spend on Spanish holidays, Italian cars and Portuguese wine, potentially helping depressed southern Europe out of its downturn, said Reuters.
That stands in contrast to the pay cuts and job losses in much of the eurozone that have hurt the bloc because consumer spending makes up about half of the economy.
In another positive development, eurozone exports to the rest of the world grew nine per cent in April while imports only rose one per cent, giving the 17 countries sharing the single currency a trade surplus of EUR14.9 billion (US$20 billion).
A slowly recovering US economy and strong Chinese demand mean eurozone exports still have a market, and falling labour costs in southern Europe have made their goods more competitive.
GERMAN wages rose at their fastest pace in almost four years at the start of 2013 and eurozone exports jumped in April, giving the bloc a basis for a recovery from its long recession, reports Reuters.
The EU's statistics office, Eurostat, revealed that nominal hourly labour costs rose 3.9 per cent in Germany in the first quarter, faster than the overall eurozone rate of 1.6 per cent. It was also Germany's biggest jump since the first three months of 2009.
Higher wages in Europe's largest economy should mean German shoppers have more money to spend on Spanish holidays, Italian cars and Portuguese wine, potentially helping depressed southern Europe out of its downturn, said Reuters.
That stands in contrast to the pay cuts and job losses in much of the eurozone that have hurt the bloc because consumer spending makes up about half of the economy.
In another positive development, eurozone exports to the rest of the world grew nine per cent in April while imports only rose one per cent, giving the 17 countries sharing the single currency a trade surplus of EUR14.9 billion (US$20 billion).
A slowly recovering US economy and strong Chinese demand mean eurozone exports still have a market, and falling labour costs in southern Europe have made their goods more competitive.