German GDP drops by 3.8%, largest decline in 40 years
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According to official figures, Germany's economy contracted by 3.8% in the first quarter of this year, the worst decline in four decades. This is the fourth consecutive time the quarterly GDP has fallen. The plunge was larger than the 3.2% decline predicted by economists. The Federal Statistics Office reports that the decline was lead by a large slide in exports and investments. "This is a dramatic plunge and a worse start to the year than we could have imagined," said Juergen Michels, an economist for Citigroup in London. Other European cou
According to official figures, Germany's economy contracted by 3.8% in the first quarter of this year, the worst decline in four decades. This is the fourth consecutive time the quarterly GDP has fallen. The plunge was larger than the 3.2% decline predicted by economists.
The Federal Statistics Office reports that the decline was lead by a large slide in exports and investments.
"This is a dramatic plunge and a worse start to the year than we could have imagined," said Juergen Michels, an economist for Citigroup in London.
Other European countries also reported declines in their GDPs. Italy reported a 2.4% decline in GDP in the first three months of 2009, the fastest plunge since 1980, while France reported a 1.2% fall in output.
The eurozone, consisting of sixteen countries, saw its economy contract by 2.5% last quarter, the worst slump since 1995.
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Read the source: Wikinews ↗Source published 16 May 2009, 05:30 am IST
