Germany Heads for a Technical Recession




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ORIGINAL POST

Posted by Ed 11 days ago
This economic slowdown is not unique to Germany but has been spreading across the EU.
OK, this is embarrassing in the land of super-stimulus via the ECB’s negative-interest-rate policy and years of QE that were supposed to perform miracles: Production in Germany’s industry, which includes construction, dropped 1.9% in November from the prior month (seasonally adjusted), the German statistical agency Destatis reported this morning. This drop is also embarrassing because economists polled by The Wall Street Journal had expected a 0.3% gain.

The agency also downwardly revised October, to a monthly decline of 0.8%. This makes three months in a row of declines. In November, compared to a year earlier (adjusted for inflation and calendar differences, but not for seasonality), the production index dropped an ugly 4.7%:

https://wolfstreet.com/2019/01/08/germany-heads-for-a-technical-recession/


https://wolfstreet.com/wp-content/uploads/2019/01/Germany-industrial-production-2018-11-.png

https://wolfstreet.com/wp-content/uploads/2019/01/Germany-GDP-growth-2018-q3.png


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