German economy slips into reverse in last quarter
Wednesday 15 February 2012
Germany's economy slipped into reverse in the last quarter of 2011, with gross domestic product falling 0.2%, according to adjusted figures.
The drop in Europe's largest economy, reported by the Federal Statistical Office, was slightly less than the 0.25% that had been expected.
The Statistical Office said the economy grew 3% overall in 2011, in line with preliminary figures released last month.
The government is predicting a return to 0.1% growth in the first quarter of 2012, and expects 0.7% growth overall for the year.
Carsten Brzeski, an economist with ING Global Research, said the fourth quarter slide was no cause for greater concern and the underlying factors supporting the German economy were still strong.
"The first economic contraction since the end of the recession turned out to be weaker than expected, confirming that the German economy only took a growth pause and is not approaching a new recession," he said in a research note. "The big unknown for the German economy remains the sovereign debt crisis."
The Economy Ministry in January cut the country's 2012 growth forecast from 1% to 0.7% - its second reduction in three months. As recently as October the prediction was 1.8%.
Still, Germany is expected to avoid a recession - defined as two consecutive quarters of negative growth - with 0.1% growth predicted for the first quarter of 2012.
The World Bank is forecasting that the eurozone economy as a whole will contract by 0.3% this year. It sees the United States growing by 2.2%, Japan by 1.9% and China by 8.4%.
Germany's 2011 growth of 3% followed a growth spurt of 3.7% in 2010 after a deep recession the previous year.
That contrasted with the performance of many of its partners in the eurozone, which have seen their economies barely grow or shrink amid debt troubles and tough austerity measures.
And why are 'southern' ways of speaking spreading north?
life + styleClarissa Baldwin is the brains behind the slogan 'A Dog is for Life not just for Christmas'
Autumn Statement 2013: Work until you’re 70 - George Osborne accused of ‘living in fantasy land’ over pension reforms
Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
Paul Walker autopsy: Results reveal Fast and Furious star's cause of death
Scientists sequence oldest human DNA from fossilised leg bone found in Spain
UK weather: Two dead and 100,000 homes without power as 100mph storm batters Scotland – now biggest tidal surge in 60 years threatens east coast
- 1 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 2 How black gold was hijacked: North sea oil and the betrayal of Scotland
- 3 A forgotten episode in Russian history leaves links with the Philippines
- 4 Scientists sequence oldest human DNA from fossilised leg bone found in Spain
- 5 ‘Put it in my mouth’: Viewers outraged by apparent reference to oral sex in VIP e-cig advert
iJobs Money & Business
£50000 - £65000 per annum + benefits + bonus: Harrington Starr: Market Data SM...
£50000 - £70000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£70000 - £85000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£75000 - £85000 per annum + Bonus and Benefits: Harrington Starr: An award win...