The Eurozone’s biggest economy is in danger of falling into a ‘double-dip’ recession, judging by new government figures.
Germany’s GDP grew by just 0.2% in 2002, according to provisional estimates from the Statistics Office – a figure that indicates either flat growth for the fourth quarter or even a slight decline. With further contraction expected for the first quarter of 2003, another recession could be on the way.
The chief source of growth last year was exports, which rose 2.9%. In contrast, private consumption fell by 0.5% and business investment in new equipment tumbled 8.4%.
The German economy has failed to bounce back from three consecutive quarters of decline in 2001, something ministers blame on the uncertain US outlook and fears over war with Iraq.
Data sourced from: The Wall Street Journal Online; additional content by WARC staff