Slide in export figures and lack of investment result in shrinking of German economy in 2009.
A recent report by the Federal Statistics Office showed that this is the worst period for the economy since the war, and the first time shrinkage has occurred in nearly seven years.
The global financial crisis hit Europe’s
biggest economy hardest and the country only managed to claw itself out of
recession in April of 2009.
The worst post WW2 performance to date was
a nearly 1 percent drop in West Germany's GDP in 1975. A 0.8 percent slide in
1993 was the worst since German reunification.
German economic authorities have forecast a
1.3 percent gain this year, however, recent data suggests it could raise the
prediction to 1.6 percent.
Financial experts remained positive
regarding the nation’s future economic development.
“The poor performance observed in 2009 will
quickly be consigned to the pages of history. We are looking forward to a
spirited recovery for Germany’s economy going forward,” said James Coleman,
Managing Director and co-head of Portfolio Trading at Softbank CIBC
International in a phone interview.
“Germany will no doubt rise again and be
the focal point for the euro zone economy. The country has always been the
driving force for growth on the continent, I doubt one bad year will change
that situation,” Coleman added.
