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Latest update: 13/11/2008
- financial crisis - Germany - recession
German economy officially in recession
The German economy is now officially in recession, according to the government statistics service, Destatis. Europe's largest economy shrank 0.5 percent in the third quarter, more than expected. The news is a new blow to confidence in Europe.
The German economy has fallen into recession as the world's leading exporter falls victim to the global financial crisis, official figures from national statistics service Destatis showed Thursday.
Europe's biggest economy contracted 0.5 percent in the third quarter, more than expected, following a contraction of a revised 0.4 percent in the second quarter, meeting the technical definition for a recession of consecutive quarterly negative growth.
Analysts polled by Dow Jones Newswires had forecast a smaller contraction of 0.1 percent in the third quarter.
The second quarter was originally given as a contraction of 0.5 percent after the economy expanded 1.4 percent in the three months to March.
On Wednesday, a panel of top economists warned that growth would come to a halt next year and blasted government plans plans to bolster the economy.
They put growth this year at 1.7 percent
Berlin recently cut its forecast for economic growth to 0.2 percent in 2009 as the financial crisis continues to send shock waves around the world.
The world's leading exporter has been hit by weakening activity in its major markets while domestic consumption has remained at low levels.
Corporate investment has suffered in turn from a sharp decline in business confidence.
On Wednesday, the economists' panel dismissed plans for a multi-billion-euro bundle of tax breaks and state investment as a "hotch-potch of isolated projects designed to give the impression that the government is doing something."
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Germany Recession
The world regrets the looming recession as a result of the financial crisis. However, certain distortions need to be addressed by the world leaders as they tackle the global financial crisis and the looming recession. 1. There is need to seriuosly look at the unequal distribution of wealth whether nationally or internationally. 2. there is need to enforce democracy and rule of law throughout the whole world. 3. there is need to refocus our attention towards building a better world for all, regardless of creed, color, or race. A better world shouldnot only look at human beings, but also the flora, fauna and culture and traditions. A successful world will be what the creator cherishes to see, so lets unite and reclaim the pride of our creator. Justice should prevail regardless of race or origin, power or autonomy. We in Zimbabwe are cherishing to see and dream of realising our dreams as well. we need a better world not the one we are right now.