Thursday, August 14, 2003

The General reported on Sunday that Italy has officially entered a recession. Now the official numbers are in for Germany, and it's the same story but on a much bigger stage.
German economy gross domestic product (GDP) contracted by 0.1 percent in the period from April to June from the preceding three months and declined by 0.6 percent compared with the figure for the second quarter of 2002, the Federal Statistics Office in Wiesbaden calculated.

The German economy had already contracted by 0.2 percent on a quarterly basis in the first quarter of 2003 and clocked up a "red zero" -- a minimal contraction -- in the last quarter of 2002.
That's three quarters now of GDP contraction in Germany, and the best the German government can forsee is 0.75% growth on the entire year.

In even more dour news, European economists are predicting stagnation in France for 2003:II, which would tip the entire eurozone into the beginnings of recession.

This is more evidence of incredibly weak global demand.


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