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The
German economy shrank in 2009 for the first time in six years, with the 5.0% decline in the price-adjusted gross domestic product
(GDP)
being the largest World War II.
What was striking in 2009 is that
both exports and capital formation in machinery and equipment slumped
heavily.
The largest forces pulling GDP
down was:
- The balance of
exports and imports made a negative 3.4% contribution much larger than
the minus 0.3% in 2008.
- Gross fixed
capital formation in machinery and equipment was down
20.0% compared to 2008
The only positive contribution to
GDP in 2009 was made by final consumption
expenditure by households (up 0.4%) and government final consumption
expenditure up 2.7%.
This 5% lower GDP was produced
with an average 40.2
million workers only 37,000 people or 0.1% less than a year earlier.
That just shows how many workers
were under-utilised or on the government assisted short work program.
Source: Preliminary German Federal Statistics Office release
Tim du Toit is the editor of Eurosharelab. Kindly note that this blog is published for
information purposes and is not investment advice. Please refer to our disclaimer.
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