Germany expects worst economic growth since WWII

Recent Outbreaks Posted on

The German government forecast Wednesday that the country's economy will shrink by 2.25 percent this year, which would easily be its worst performance since World War II as exports decline sharply amid the global downturn.

The new forecast for Europe's biggest economy was down drastically from the government's previous prediction, made in mid-October, of 0.2 percent growth.

"There is no precedent in postwar history for this economic decline that we unfortunately have to forecast," Economy Minister Michael Glos told reporters.

He predicted that exports — a key driver of German growth over recent years — would slump by 8.9 percent in 2009.

As the world's leading exporter, "we have profited greatly from upswings in the world economy and obviously, when things go the other way, we are an economy that is particularly affected," Glos said.

The worst postwar annual economic performance to date was a 0.9 percent decline in West Germany's gross domestic product in 1975. The worst since German reunification was a 0.8 percent fall in 1993.

The economy went into reverse in last year's second quarter and slipped into recession in the third quarter.

Glos said Germany's central bank, the Bundesbank, believes the economy shrank about 1.75 percent in last year's final quarter compared with the previous three months as the global financial crisis intensified.

Germany's Federal Statistical Office has said that the economy grew by 1.3 percent last year, only about half the previous year's rate, weighed by rapidly weakening exports.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.


American Bar Association – Start and Run a Law Firm – Starting a Law Firm

Lawyer Website Designs