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With GDP Slip, German Economy 'Finally Lost Its Invincibility'

Feb 14, 2013
Originally published on February 14, 2013 2:42 pm

Today we got more troubling news for the world economy: Germany's GDP slipped 0.6 percent in the final quarter of 2012, sending the Eurozone deeper into recession.

The Guardian spoke to Carsten Brzeski and analyst for ING, who said:

"With increased uncertainty stemming from the euro crisis and the global economy cooling in the second half of the year, the German economy has finally lost its invincibility. Looking ahead, however, there is increasing evidence that the economy should pick up speed again very quickly."

The French economy also faltered, contracting 0.3 percent in the same quarter.

Overall, reports the AP, the eurozone's economic output declined by 0.6 percent. The AP adds:

"Thursday's figures highlight the scale of the problems that have afflicted the single currency zone over the past year. Fears of a break-up, if not a collapse, of the currency dented confidence at a time when many governments were embarked on fairly severe debt-reduction programs.

"In 2012 as a whole, the eurozone economy shrank by 0.5 percent, a stark contrast from the 2.2 percent growth recorded in the U.S. and the 1.9 percent in Japan."

In essence, the AP wraps up, while sentiment is more positive toward the eurozone the underlying numbers are still weak.

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