Germany falters in recovery

Germany falters in recoveryGermany reported flat GDP numbers in the fourth quarter. Europe’s largest economy stagnated amid declined consumption & investment.

Only the exports were seen in positive territory as per the data published by the Federal Statistical Office. The gross domestic product remained flat on a sequential basis in the fourth quarter, after a 0.7% rise in the previous three months. The main contributing factors were the negative numbers for final consumption expenditure and capital formation as they slowed down economic growth.

Germany’s economic recovery stalled as rising unemployment, expiring government stimulus measures and increasing budget deficits are threatening growth across the region. Already under pressure, the euro with concerns of high debt level in some European countries, especially Greece, faces more heat with these disappointing figures.

Germany and France both emerged from recession last summer. German economy grew by 0.4% in the second quarter of last year and by 0.7% in the third quarter. However France recorded 0.6% growth in the fourth quarter.

Christine Lagarde, the French economy minister said, "I think 0.6% is really a satisfactory result that proves that the stimulus measures we took were efficient”.