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| Economy |
| German economy soars at fastest pace in 2 decades |
| 2010-08-14 |
| [Dawn] Germany's economy surged ahead in the second quarter, growing 2.2 per cent -- the fastest pace since reunification two decades ago and beating market forecasts -- as a global recovery fed demand for its exports. The first-quarter growth figure for Europe's biggest economy also was revised upward Friday to 0.5 per cent -- more than double the initial reading of 0.2 per cent. ''The recovery of the German economy, which lost momentum at the turn of 2009/2010, is really back on track,'' the Federal Statistical Office said as it released the preliminary second-quarter figures. Economists had expected second-quarter growth of less than 2 per cent. In year-on-year terms, output rose by 3.7 per cent. While foreign trade was one of the key drivers of growth, household and government consumption also contributed to the rise in gross domestic product, the statistical office said. An improving global economy has fed demand for German exports, while industrial orders and business confidence have been rising. The economy shrank by a painful 4.9 per cent last year -- easily the worst performance since World War II. The government still has an official forecast for this year of 1.4 per cent growth, but Economy Minister Rainer Bruederle said Friday that expansion of ''well over 2 percent'' is now possible. ''One cannot speak of an economic miracle, but we are experiencing an XL upswing at the moment,'' Bruederle said. Carsten Brzeski, an economist at ING in Brussels, said the economy benefited from ''a catching up in the construction sector after the harsh winter and strong foreign demand for German goods.'' He cautioned that ''German growth will return to more ordinary growth numbers'' looking forward. ''Nevertheless, despite an inevitable slowdown, all ingredients are there for the German economy to take the next step toward a self-sustained recovery.'' Second-quarter gross domestic product figures for the full 16-nation eurozone were due later Friday. |
| Posted by:Fred |
| #5 Germany is the world's largest exporter. Germany $ 1,121,000,000,000 2009 est. United States $ 994,700,000,000 2009 est. The main difference is that German companies produce relatively little overseas, and most of what they do make outside Germany is in eastern Europe. Germany companies haven't exported their knowhow and hence German jobs. Which is the aspect of globalization nobody wants to talk about. |
| Posted by: phil_b 2010-08-14 19:12 |
| #4 It is "soaring" because the Germans look after the interests and the economy of the GERMANS! They don't give a damn about China and the rest of the third world. |
| Posted by: Besoeker 2010-08-14 16:17 |
| #3 Getting govt spending under control will help. ABC-123 elementary. As far as size of its economy, Greece is minuscule. Germany is significant. The US is huge. The US is behaving like Greece, and will become an economic basket case like Greece if we let Zero and his democrat and RINO cads systematically destroy our economy. |
| Posted by: Alaska Paul 2010-08-14 14:14 |
| #2 Interesting. The jump in the US trade deficit a couple of days ago, largely due to a fall in exports pointed to a slowing world economy. This points in the opposite direction, or maybe Germany is doing the right things while the US isn't. |
| Posted by: phil_b 2010-08-14 05:29 |
| #1 hmmm frugal monetary policy and free market enterprise succeeding. Chairman Zero should take note of this. Unless he's too much of an idealog. |
| Posted by: Mike Hunt 2010-08-14 01:55 |