German real GDP growth decelerated to 1.3% last year from 2.5% in 2007. The breakdown showed stagnating private consumption and a pick up in government consumption of 2.2%. Capital investment rose 5.3% and construction investment 2.7%, which are still robust numbers. Exports were up 3.9%, but this was outweighed by a 5.2% rise in import growth. On a workday adjusted basis the slowdown in overall growth was even more pronounced with workday adjusted GDP rising 1.0%, versus 2.6% in 2007. Consensus expectations had been for 2008 growth of 1.4% and the slightly lower result suggests a sharp contraction in economic activity in the last quarter of the year, as export demand breaks off and the manufacturing sector is facing a slump in demand that is forcing production cuts. Consumption was already weak last year and is unlikely to improve any time soon in the light of rising unemployment. We had been looking for a contraction in overall growth of 1.5%, but the German economy could face negative growth of more than 2% if the government's stimulus package fails to lift confidence soon.
Disclaimer
Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.
Subscribe To
Posts
Comments
No comments:
Post a Comment