Growth in Europe's biggest economy slowed sharply in the second quarter of 2011, adding to signs that the global recovery is losing momentum as EU leaders struggle to get a grip on eurozone debt.
The German economy grew by a slim 0.1 percent in the second quarter of 2011, according to official data published Tuesday."The dynamism in the German economy has cooled significantly since the robust start to the year," the federal statistics office, Destatis, said in a statement.
Analysts polled by Dow Jones Newswires had expected Europe's biggest economy to grow by 0.4 percent between April 1 and June 30 as the eurozone grappled with a crippling debt crisis. The data showed Germany was actually growing at a slower pace than battered, debt-ridden Spain, where gross domestic product (GDP) grew by 0.2 percent in the second quarter.
Growth has been hit by slowdown in the construction industry Statisticians said the 0.1 percent growth in the second quarter compared to the first quarter was based on anemic expansion in exports, which are normally the backbone of the German economy.
Imports rose more than exports in the second quarter, undermining the growth figures, as consumer spending and investment in construction also slipped. "The global slowdown is gradually reaching Germany," Andreas Scheuerle, an economist at Dekabank, told Reuters. Meanwhile, Destatis revised its first-quarter growth figure downwards from 1.5 to 1.3 percent.The statistics office said data dating back to 1991 had been adjusted as part of a wide-reaching review conducted every five years.
The poor growth figures surprised many investors and caused European stocks to fall in early trading ahead of economic talks between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Paris later Tuesday. Germany has been a star performer in the industrialized world since the end of the 2008 financial crisis. Analysts say a sharp slowdown in German growth would have serious repercussions elsewhere in the eurozone. "While German politicians are currently racking their brains on the pros and cons of common eurobonds, the luxury of having an economy running at 'wonder' speed is fading away," said ING economist Carsten Brzeski.
Author: Sam Edmonds (dpa, Reuters, AFP)
Editor: Martin Kuebler
Editor: Martin Kuebler
It does not cease to amaze me how slowdowns, downturns, bad markets etc. all happen UNEXPECTEDLY as far as the experts are concerned. Are all these experts with big Economic and Political Science degrees really really big MORONS in fact that they never see these things coming? Or do they not see them coming because they are paid to keep making the picture look rosy rather than to report the ugly reality. So leaving aside the propaganda of the mainstream media, according to whom everything is always peace and prosperity, let me tell you the ugly truth.
THE GLOBAL ECONOMY IS DEAD!!! The politicians and media keep spraying perfume on the corpse to hide the stench but the corpse is so rotten now that within a matter of months, the whole world will know that it is dead and ready to be buried. What does that mean for you - do the words 'HEAD FOR THE HILLS' hold any meaning for you? What is coming next?
- RIOTS, REVOLUTIONS, WAR, CHAOS
- HUNGER, FAMINE, HUMANICIDE (rather than use the word GENOCIDE I have decided to coin a new word HUMANICIDE since mass death is coming to all parts of the world not just one nation or culture)
Out of the ashes of civilization as it exists in 2011 will arise, like the Phoenix, a new civilization, first ruled by ten regional Global powers, and ultimately by one single MAN OF SIN. Most of us living today will probably not survive the soon coming cataclysms; so you may want to start thinking and understanding what comes after you depart the mortal coil. Your soul will continue to exist forever; the only question is in what condition will it exist in once this body takes a dirt nap?
Life is beautiful; it is like an intoxicating nectar of which one can never get enough. I don’t want to live for a 1000 years or 10,000 years or 10 million years, I want to LIVE FOREVER, which means my existence cannot be not limited by TIME. I know someone who has promised that He can deliver me from MORTALITY into IMMORTALITY; that someone is JESUS CHRIST, I believe this with every fiber of my being, I hope so will you!