German economy trends sideways in Q4 2009

Wednesday, 24 February 2010 14:29:40 (GMT+3)   |  

Germany's gross domestic product (GDP) in the fourth quarter of 2009 stagnated at the previous quarter's level (0.0 percent), upon adjustment for price, seasonal and calendar effects, according to a report released by the country's Federal Statistical Office (Destatis). Hence, the slight upward trend with increase rates of 0.4 percent and 0.7 percent observed for the economy in the second and third quarters of 2009 respectively did not continue.

German economic development in the fourth quarter of 2009 was supported only by foreign trade. While exports rose three percent as compared to the previous quarter, imports decreased by 1.8 percent. The resulting balance of exports and imports contributed two percentage points to the national economic development. However, this positive contribution to growth was entirely offset by the negative development of domestic consumption, which was down a total of 2.1 percent.

In contrast to the quarter-on-quarter comparison, the price-adjusted GDP was down on a year earlier. In the fourth quarter of 2009, it declined by 1.7 percent as compared to the same quarter of the previous year, while the calendar-adjusted index dropped by 2.4 percent. Although the decrease was smaller than in the previous quarters of 2009, the extent of the economic crisis is still obvious.


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