FRANKFURT — The German economy shrunk the most in three years during the last quarter of 2012, as exports fell and companies invested less in new equipment, according to official figures published Thursday.
Gross domestic product fell 0.6 percent in the last three months of the year compared with the previous quarter, after growing 0.2 percent in the third quarter.
For the full year, Germany still managed slight growth of 0.1 percent, the German Federal Statistical Office said. The decline in the fourth quarter was the biggest since early 2009.
Economists expect the downturn, the only negative quarter of 2012, to be short, with growth recovering early this year.
Still, it was an illustration of Germany’s vulnerability to the fortunes of its neighbors, who have been suffering the effects of the euro crisis.
And it is bad news for Europe as whole, because the relatively strong German economy has been compensating for weakness in France and other countries.
“The German economy has finally lost its invincibility,” Carsten Brzeski, an economist at ING Bank, said in a note to clients.
But like other economists, Mr. Brzeski expects a quick recovery now that fears of a euro zone breakup have eased.
Surveys of business confidence show that German managers are poised to invest again, while the recovering U.S. economy has been a boon for German exporters.
In addition, orders to German companies have improved, while inventories of unsold goods have been depleted.
That should lead to growth during the quarter that began in January, analysts said. Data on growth in the euro zone and European Union is also due Thursday and is expected to show a decline.
As with Germany, economists and official forecasters at the European Central Bank expect euro zone growth to recover in the course of the year.
nytimes.com
Gross domestic product fell 0.6 percent in the last three months of the year compared with the previous quarter, after growing 0.2 percent in the third quarter.
For the full year, Germany still managed slight growth of 0.1 percent, the German Federal Statistical Office said. The decline in the fourth quarter was the biggest since early 2009.
Economists expect the downturn, the only negative quarter of 2012, to be short, with growth recovering early this year.
Still, it was an illustration of Germany’s vulnerability to the fortunes of its neighbors, who have been suffering the effects of the euro crisis.
And it is bad news for Europe as whole, because the relatively strong German economy has been compensating for weakness in France and other countries.
“The German economy has finally lost its invincibility,” Carsten Brzeski, an economist at ING Bank, said in a note to clients.
But like other economists, Mr. Brzeski expects a quick recovery now that fears of a euro zone breakup have eased.
Surveys of business confidence show that German managers are poised to invest again, while the recovering U.S. economy has been a boon for German exporters.
In addition, orders to German companies have improved, while inventories of unsold goods have been depleted.
That should lead to growth during the quarter that began in January, analysts said. Data on growth in the euro zone and European Union is also due Thursday and is expected to show a decline.
As with Germany, economists and official forecasters at the European Central Bank expect euro zone growth to recover in the course of the year.
nytimes.com
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