Germany in recession with third-quarter contraction (Irish Times)
German gross domestic product contracted by 0.5 per cent in the third quarter, putting Europe's largest economy in recession for the first time in five years, Federal Statistics Office figures showed today.
The bigger than expected quarter-on-quarter drop in growth, adjusted for seasonal, calendar and price effects, was marked by a negative contribution from foreign trade as exports weakened. This more than offset a rise in private and public consumption.
The office also revised up the second-quarter GDP figure to show a contraction of 0.4 per cent, compared with 0.5 per cent previously reported. The last time the economy shrank for two straight quarters was in the first half of 2003, it said.
"If you think today's numbers are already bad, just wait for the next quarter”, said ING Financial Markets' Carsten Brzeski. “The headwinds of the financial crisis and the global economic slowdown are blowing right in the face of the German economy.”