Forecast Update: USA, Euro area, Germany

USA•Weak first quarter•Government spending on the decline•Considerable uncertainty surrounding fiscal policyEuro area•Solid economic growth in the first quarter of 2011•Growth differentials in the eurozone are narrowing slightly•ECB starts a gradual retreat from its ultra-loose interest rate policyGermany•Strong economic growth in the first quarter of 2011 (+1% q-o-q)•Less dynamic development as the year progresses•Marked losses in purchasing power due to higher oil prices

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