Monday, January 9, 2012

Germany in recession

2011 saw Italy, Spain, Ireland, and Greece in the headlines, both as nations in default of their debts, and experiencing social unrest for a declining economy and mass unemployment.  Entering the new year, we can now add Germany to the growing list of countries in recession, as noted by more than a dozen economists who have come to this conclusion.

The German economy is in for a weak start in the new year. This is the result of a survey of "World Online" under 14 bank economists. The majority of experts expected that the gross domestic product (GDP) over the past three months has shrunk.
In the first quarter of 2012, this decline is likely to intensify further. Technically, Germany is thus already in the midst of a recession. An economy is by definition in decline when economic output is two consecutive quarters. – Zerohedge via Bild

A German economy in recession will only complicate the matters in the Euro Zone, as staunch inflation hawks will now fight against a growing population who will demand intervention if the economic downturn continues over an extended period of time.  What this means for the rest of the EU, and if Germany will be willing to help bailout its neightbors has yet to be seen.


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