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Rise in GDP lifts Germany out of recession

Rise in GDP lifts Germany out of recession
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First Published: Thu, Aug 13 2009. 11 58 AM IST
Updated: Thu, Aug 13 2009. 11 58 AM IST
Berlin: German gross domestic product (GDP) rose unexpectedly by 0.3% in the second quarter, bringing an end to the country’s deepest recession since World War II and boosting hopes of recovery in the broader euro-zone.
The Federal Statistics Office said on Thursday the preliminary quarter-on-quarter rise was led by increases in private and public consumption, construction and net trade, as a slump in imports outpaced a decline in exports.
Europe’s largest economy had been in its sharpest recession since the war, with GDP declining for four consecutive quarters. A record GDP contraction in the first quarter was revised up to a fall of 3.5% from 3.8% previously.
Year-on-year, the economy shrank by 7.1% in the second quarter, the data showed, following a 6.4% drop in the January-March period. Economists polled last week by Reuters had expected GDP to contract by 0.3% on the quarter and post a 7.3% drop year-on-year.
The government expects the economy to contract by some six percent this year. However, the economy ministry had said before the publication of the GDP figures that the economy probably stabilised in the second quarter.
Adjusted for working days, German GDP contracted by 5.9% on the year in the second quarter. In the first quarter, it shrank by 6.7%. The Office is due to publish a detailed breakdown of the second quarter GDP data on 25 August.
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First Published: Thu, Aug 13 2009. 11 58 AM IST
More Topics: Germany | GDP | Recession | Economy | World War II |