Recession reached Germany

For the second time in a row German GDP has fallen. According to the official definition this means that Germany is going through a recession. GDP decreased by 0.5% in the third quarter this year as compared to the second quarter after adjustments for price, season and calendar. In the second quarter 2008 German GDP had still grown by 1.4%, but then shrunken by 0.4% in the second quarter. Detailed figures will be published by the Federal Statistical Office on November 25th.

With regard to the third quarter 2007 German GDP increased by 1.3% after adjustment for price and by 0.8% after adjustment for calendar. This increase is due to the fact that there was one more working day in the third quarter 2008 than in the same quarter 2007.

Compared to the second quarter this year there were some positive growth stimuli in the third quarter due to a small increase in private and public consumption. At the same time imports increased and exports decreased which had negative effects on GDP.

In the third quarter 2008 German GDP was generated by 40.5 million employees which is a plus of 1.5% or 582,000 people as compared to the third quarter 2007. GERMAN