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Germany dives further into recession

Jane Padgham12 April 2012

GERMANY'S once-powerful economy posted its weakest performance for eight years in 2001, tipping it further into recession. Gross domestic product, a measure of overall economic activity, grew by only 0.6% during the year, compared with 3% in 2000.

Figures for the fourth quarter have not yet been published but today's data indicate Germany shrank again in the fourth quarter after contracting in the second and third.

'Any doubt that Germany is in recession will be quashed when the fourth-quarter figures are released in March,' said Nigel Anderson, chief Euro economist at Royal Bank of Scotland.

The grim findings will be a blow to Chancellor Gerhard Schroeder, who is facing a struggle to stay in power in September's elections. Recession has forced him to abandon a pledge to slash unemployment, currently close to 4m to 3.5m in time for the vote.

Today's news piled more pressure on the euro. It slid to 88.15 US cents, or 61.40p.

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Financial Crisis
Germany
Royal Bank Of Scotland
Stock And Equity Market And Stock Exchange
Unemployment