Germany Enters Recession First Time in 5 Years
The largest Eurozone economy entered into recession in the third quarter for the first time in five years, official data showed Thursday.
A first estimate from the Federal Statistical Office revealed that the German economy contracted 0.5% quarter-on-quarter in the third quarter, following a 0.4% fall in the second quarter. Economists had predicted the economy to shrink 0.2% in the third quarter.
The statistical office is scheduled to release a more detailed report on November 25.
Earlier, the German government slashed its economic growth forecast for 2009 to 0.2% from 1.2% citing international financial market crisis. At the same time the government maintained its outlook for 2008 at 1.7%.
Economists now predict GDP to fall in future as Germany along with other Eurozone economies are facing deep recession. The European Commission expects economic growth in the 15-nation economy to slow to 0.1% in 2009 after growing only 1.2% in 2008.
Source :
1. RTTNews : Germany Enters Recession For First Time in 5 Years, 11/13/2008 9:10 AM ET.
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