The Germany Economy’s Turn to Fall Apart

[marmar]

from 24/7WallStreet:



The Germany Economy’s Turn to Fall Apart
Posted: August 16, 2011 at 6:31 am


Germany reported that its second-quarter gross domestic product rose only 0.1%. That disappointing number can be added to the U.S. growth rate of 1.3%, the 0.2% rate in the UK and Spain’s 0.2% estimate for the period. And the eurozone’s GDP grew 0.2% in the second quarter, compared with the preceding three months, according to Eurostat. Those are the best of the numbers outside of emerging markets like China and India. Japan reported that its GDP fell 1.3% in the April to June period. GDP dropped 6.9% in Greece in the same time frame.

If this is not a recession, then what is?

Germany has regularly been described as Europe’s miracle economy, and in many cases, the miracle economy of the entire developed world. Germany has a highly skilled workforce, advanced engineering and manufacturing prowess, and a large pool of intellectual property that is probably not matched outside the U.S. and Japan. Germany’s $3.3 trillion GDP puts it just behind Japan and then China, where GDP has surged to $5.9 trillion. But China has over 1.4 billion people. Germany has 82 million. Productivity is one of Germany’s great economic assets.

Productivity obviously loses some of its advantages when demand tumbles. Germany now faces a period when it is the single most effective producer of high-end goods and some services, but it operates in a world of diminished demand. That period may be extended for some time if the global recession spreads.

Many of Germany’s largest companies cater to portions of the global economy that have been relatively stable so far. Its large car companies include BMW and Daimler. Its flagship tech company, SAP (NYSE: SAP), is a powerhouse in the enterprise technology business, which serves major corporations and governments around the world. Bayer and BASF are among the largest suppliers of advanced chemical goods in the world. ............(more)

The complete piece is at: http://247wallst.com/2011/08/16/the-germany-economys-turn-to-fall-apart/#ixzz1VCFb3YdP

[fasttense]

1. Yeah, remember the last world wide economic crisis

and Germany's response to it? I think it was called WWII.

[MadHound]

2. If the German economy tanks, then all of Europe's economy tanks, as well as ours.

Germany is the largest prop holding up the EU right now, and if it goes, the whole thing goes, and takes the rest of the global economy with it.

[OneGrassRoot]

3. Green technology and retrofitting...

If the entire world would come together to focus on this, the global economy -- and obviously the Earth and her inhabitants -- would benefit tremendously, imho.

[The2ndWheel]

5. The economy and the environment will always be at odds

One has to regulate the other.

[xchrom]

4. Recommend

[sfpcjock]

6. This is shocking. They also kept their workforce on part time

to earn money and maintain their skills throughout the Great Recession, and that seemed to work for a while. Now with Greece, Portugal, Spain, Ireland, Italy and possibly even France facing trouble the GDP and spending is probably way down.