Germany in recession, Q3 GDP down 0.5%

13 November 2008 14:21  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s economy shrank again in the third quarter, pushing Europe’s biggest economy officially into recession, according to data released on Thursday.

 

GDP dropped 0.5% from the second quarter, coming after an adjusted 0.4% sequential decline in the second quarter, said federal statistics agency Statistisches Bundesamt.

 

The news comes after German chemical employers and union IG BCE called on the government to do more to revive the economy and industry group VCI reported German third-quarter chemical industry production down 1% from the second quarter and 1% year on year.

 

Wiesbaden-based Statistisches Bundesamt said the third-quarter decline was led by weakening exports and rising imports.

 

Compared with the 2007 third-quarter, GDP rose 1.3%, largely due to an extra working day in the 2008 period, the agency said.

 

Germany’s government last month cut its growth forecast for 2009 to 0.2% from its earlier 1.2% projection. But economists said with the latest third-quarter decline the country may be looking at a contraction of 1% or more next year.

 

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By: Stefan Baumgarten
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