German economy shrinks 0.2 percent in fourth quarter of 2004
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The German economy shrank by 0.2 percent in the last three months of 2004, a preliminary estimate by the federal statistics office, Destatis, shows, confirming a slowdown in activity in the eurozone's biggest economy in the second half of last year.
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German business confidence dropped in August, reflecting concerns about economic recovery in the country, a survey made by a leading economic institute showed Thursday.
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Recovery of the German economy -- the biggest in the 12-country eurozone -- is feeding into jobs and unemployment has fallen below four million for the first time for four years.
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The Bundesbank is forecasting growth of 1.2 - 1.3 percent for the German economy next year, much less than the government's official forecast of 1.7 percent.
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Germany's economy expands just 0.1% in the third quarter as weak exports offset a growth in domestic demand.
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The German economy -- the biggest in the 12-country eurozone -- continued to tread water in the fourth quarter, notching up growth that was only fractionaly higher than in the preceding three months, the Bundesbank estimated.
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The economy nearly stalled in the fourth quarter with a growth rate of just 0.6 percent, capping its worst year since 2002.
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A key indicator of near-term German economic performance plunged this month to its lowest reading since January 2003 against the backdrop of a rising euro and amid increasing signs of a cooling off in economic activity.
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The German economy, which grew strongly in the first half of this year on the back of robust exports, will see a slowdown next year as a result of the braking effects of runaway oil prices and a tailing off of foreign demand for German-made goods, top research institutes warned.
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Japan's GDP fell by 0.1% in the last quarter of 2004, taking the country into recession.
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The German economy grew by a solid 2.5 percent last year, helped by strong exports, but a downbeat survey of investor confidence pointed to clouds on the horizon for Europe's biggest economy.
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Germany's gross domestic product (GDP) grew by 1.7 percent in 2004 after three years of stagnation, the Federal Statistic Office announced Thursday.
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Clouds continued to gather over the German economy on Monday, as the Bundesbank estimated that the modest recovery of the eurozone's biggest economy already appears to be running out steam.
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A German research institute lowered its economic growth outlook for Germany for 2005 on Tuesday, saying exports are expected to slow and domestic demand will not rise enough to make up the difference.
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The euro-zone economy grew by 0.5 percent in the second quarter of 2004, a touch slower than in the first three months of the year, according to initial estimates released Tuesday by the European Union.
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Germany's budget deficit for 2004 is expected to be far lower than forecast and fall below the record of 40 billion euros (52 billion dollars), a finance ministry spokesman revealed.
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Germany's sputtering economy shrank in the final quarter of 2004, the latest government figures show.