German Growth Components Beat Estimates While Consumer Sentiment Dips; Thai Markets Rally on Rate Cut

Economic Growth in Germany - Germany's GDP grew by 0.3% in Q4 2025, meeting expectations, with strong domestic demand driving this growth [2][3] - Private consumption rose by 0.5%, exceeding the estimated 0.3%, while government spending increased by 1.1%, nearly double the previous quarter's growth of 0.6% [2] - Capital investment also contributed positively, rising by 1.0% against an anticipated 0.7%, indicating robust internal activity [3] Consumer Sentiment and Outlook - The GfK Consumer Confidence index for March fell to -24.7, worse than the expected -23.0, indicating consumer wariness due to price pressures and global economic uncertainty [4] - The disparity between Q4 spending and March sentiment suggests that consumer spending momentum may be fading, potentially impacting retail sectors in H1 2026 unless real wage growth accelerates [5] Thai Market Response - Thai stocks surged by 1.6% following a rate cut by the Bank of Thailand, which emphasized an accommodative monetary policy to support economic recovery [6] - The central bank noted that subdued inflation is primarily due to lower global energy prices and ongoing government subsidies, prioritizing domestic demand recovery [7] Nordic Economic Trends - Sweden's Producer Price Index (PPI) for January increased by 2.4% month-on-month, contrasting with a -1.1% in December, although annual figures still show a decline of 2.0% [8] - Norway's unemployment rate remained stable at 4.5% in January, indicating a temporary equilibrium in the labor market amidst broader European economic shifts [10]