Germany slides into recession nov 13th.

Antaletriangle · 11-13-2008, 12:33 PM

http://www.guardian.co.uk/business/2...many-recession
Update on the ongoing economic slide.
Germany officially slid into recession today according to economic data showing that Europe's largest economy shrank in the last quarter.

The Federal Statistics Office said GDP contracted 0.5% in the third quarter, following a 0.4% drop in the second, which corresponds to the official definition of a technical recession – two consecutive reductions in GDP.

The third-quarter contraction was much worse than expected. Analysts had predicted around 0.1%, but the slump in world trade has hit Germany, the world's leading exporter, more severely than expected.

Germany is the second eurozone country to fall into recession – its first in five years. Ireland's economy contracted during the first half of the year.

"The downturn is stronger than we expected. The essential message is: we've got it black on white, the recession is here," Sebastian Wanke, economist at DekaBank told Spiegel.

This morning's news came on top of gloomy predictions by Germany's so-called "five wise men", or Council of Economic Experts, who warned yesterday that the economy was on the point of stagnating and that unemployment was set to rise.

They criticised government attempts to stall the crisis with a €12bn (£10bn) stimulus package of tax breaks and investment incentives. The measures include cutting vehicle registration fees, tax breaks for companies investing in their own factories, and incentives to promote energy efficiency. The package is to be presented to the Bundestag for approval today.

The five wise men recommended instead a huge public investment programme for Germany's transport system in an attempt to halt the downturn.

The German recession is confirmation of the fast switch in its economic fortunes since the start of 2008. Germany has seen exports plunge due to the decrease in demand for industrial goods. As growth splutters, car plants have been forced to send workers on leave for weeks on end.

Lower oil prices, lower interest rates and a soft euro mean that there is little hope of a rebound anytime soon. But amid the gloom experts said the domestic front was showing positive developments with growth expected in private and public consumption due to wage rises, a rise in social welfare benefits and a stabilisation of the price of consumer goods. Germany's housing market is not dominant and Germans on the whole have very low levels of personal debt.

SuperManny · 11-14-2008, 05:38 AM

That's just the Mayan 5th night making a dramatic exit!

I expect the US markets to resume their death spiral next week.

For the truly gruesome stuff, just wait about 4-6 months, when all this "printing money" and bailout madness catches up to us.

I encourage everyone to cultivate their spiritual side and really get in touch with their inner guidance, because the physical side of things will be a bit rough without this support.

11-13-2008, 12:33 PM	#1
Antaletriangle Avalon Senior Member Join Date: Sep 2008 Location: U.K. Posts: 3,380	Germany slides into recession nov 13th. http://www.guardian.co.uk/business/2...many-recession Update on the ongoing economic slide. Germany officially slid into recession today according to economic data showing that Europe's largest economy shrank in the last quarter. The Federal Statistics Office said GDP contracted 0.5% in the third quarter, following a 0.4% drop in the second, which corresponds to the official definition of a technical recession – two consecutive reductions in GDP. The third-quarter contraction was much worse than expected. Analysts had predicted around 0.1%, but the slump in world trade has hit Germany, the world's leading exporter, more severely than expected. Germany is the second eurozone country to fall into recession – its first in five years. Ireland's economy contracted during the first half of the year. "The downturn is stronger than we expected. The essential message is: we've got it black on white, the recession is here," Sebastian Wanke, economist at DekaBank told Spiegel. This morning's news came on top of gloomy predictions by Germany's so-called "five wise men", or Council of Economic Experts, who warned yesterday that the economy was on the point of stagnating and that unemployment was set to rise. They criticised government attempts to stall the crisis with a €12bn (£10bn) stimulus package of tax breaks and investment incentives. The measures include cutting vehicle registration fees, tax breaks for companies investing in their own factories, and incentives to promote energy efficiency. The package is to be presented to the Bundestag for approval today. The five wise men recommended instead a huge public investment programme for Germany's transport system in an attempt to halt the downturn. The German recession is confirmation of the fast switch in its economic fortunes since the start of 2008. Germany has seen exports plunge due to the decrease in demand for industrial goods. As growth splutters, car plants have been forced to send workers on leave for weeks on end. Lower oil prices, lower interest rates and a soft euro mean that there is little hope of a rebound anytime soon. But amid the gloom experts said the domestic front was showing positive developments with growth expected in private and public consumption due to wage rises, a rise in social welfare benefits and a stabilisation of the price of consumer goods. Germany's housing market is not dominant and Germans on the whole have very low levels of personal debt.

11-14-2008, 05:38 AM	#2
SuperManny Avalon Senior Member Join Date: Sep 2008 Location: Out of Body Posts: 98	Re: Germany slides into recession nov 13th. That's just the Mayan 5th night making a dramatic exit! I expect the US markets to resume their death spiral next week. For the truly gruesome stuff, just wait about 4-6 months, when all this "printing money" and bailout madness catches up to us. I encourage everyone to cultivate their spiritual side and really get in touch with their inner guidance, because the physical side of things will be a bit rough without this support.