BUSINESS, MARKETING, and MONEY

Germany's economy is driven by its exports

Germany's unemployment rate rose to 8.6% in March as the global economic downturn continued to tighten its grip on Europe's largest economy.

The rate rose slightly from 8.5% in February, on an unadjusted basis.

In seasonally adjusted terms, the rate rose to 8.1% from 8%, official figures also showed. This equates to 3.4 million people, an increase of 69,000.

Unemployment rates have been rising across Europe, with the Spanish jobless rate the highest at more than 14%.

Weak economy

"The economic downswing is increasingly having an impact on the labour market," said Frank-Jurgen Weise at the Federal Labour Office.

The jump in the number of people out of work was bigger than many analysts had forecast.

"The increase was stronger than expected. That's obviously linked to the weaker economy. For the second quarter, we expect a slight decline and stabilisation after that," said Stefan Muetze from Helaba.

"But we have to assume that the job market will deteriorate further, well into 2010. At the end of 2009, we're likely to be near the four-million mark in unemployment figures," he added.

German employers' attempts to prevent laying off workers failed to prevent the increase in unemployment.

"Given that many German firms are still trying to get by with short-time work instead of lay-offs, the marked rise in joblessness during March is a harbinger of even worse figures to come during the second half of 2009," said Timo Klein at IHS Global Insight.

Oil prices, which fell sharply last year, have gained 15% in 2009

Crude oil's price has risen back above $50 a barrel for the first time in ten weeks, pushed higher by a weaker dollar and hopes of an economic upturn.

US light crude gained rose to $52.25 before closing at $51.61 a barrel in New York trading.

Oil has gained more than 15% since the start of the year.

Oil gained after the US Federal Reserve announced a plan to buy $1.2tn (£843bn) of debt to boost its economy, which in turn may stoke oil demand.

In London, Brent oil gained by $3.01to $50.67.

The Fed's plan to buy up to $300bn worth of government debt as well as $750bn of mortgage-backed securities sent the dollar lower against all major currencies, as investors were concerned about the increase in the money supply.

Oil prices, which fell sharply last year, have gained 15% in 2009

Crude oil's price has risen back above $50 a barrel for the first time in ten weeks, pushed higher by a weaker dollar and hopes of an economic upturn.

US light crude gained rose to $52.25 before closing at $51.61 a barrel in New York trading.

Oil has gained more than 15% since the start of the year.

Oil gained after the US Federal Reserve announced a plan to buy $1.2tn (£843bn) of debt to boost its economy, which in turn may stoke oil demand.

In London, Brent oil gained by $3.01to $50.67.

The Fed's plan to buy up to $300bn worth of government debt as well as $750bn of mortgage-backed securities sent the dollar lower against all major currencies, as investors were concerned about the increase in the money supply.

National debt has increased steeply since the rescue of Northern Rock

Government debt rose to £750.3bn in 2008, more than half of gross domestic product (GDP), according to the Office for National Statistics (ONS).

The ONS data also showed that the government's deficit, as defined by the EU's Maastricht Treaty, more than doubled to £78bn from £36.7bn.

It means that government net borrowing is the equivalent of 5.4% of GDP.

The Maastricht Treaty specifies that deficits should not exceed 3% of GDP and debt should not exceed 60% of GDP.

Last week, the European Commission set deadlines for five countries, including the UK, to rein in their budget deficits.

The UK was given until 2013-14 to reduce its deficit to meet the 3% target.

The debt figure includes the government's rescue of Northern Rock, which was nationalised in February 2008.

It does not include subsequent bank bail-outs or treasury bills provided to the Bank of England for use in the Special Liquidity Scheme since April 2008.