Saturday, May 08, 2004

Economic recovery in the eurozone looks to be in trouble again.
A big drop in German industrial production in March reported on Friday fuelled fears that the modest recovery in the eurozone's biggest economy may already be stalling.

Output tumbled 2.3 per cent on the month, the biggest decline since August and was down 0.7 per cent on the year, well short of the 0.5 per cent rise market economists had predicted.

The government rushed to calm market nerves by announcing that the data would be "revised up significantly" once extra working days in March had been fully taken into account. But economists warned that even with a substantial revision of more than one percentage point first-quarter GDP growth could still fall short of expectations.
With Germany faltering, China cooling and Japan's recovery built almost entirely on exports, global economic expansion depends even more on overconsumption and debt in the Anglosphere.


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