Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-German recession deepened in Q1 -Buba

Published 04/20/2009, 07:24 AM
Updated 04/20/2009, 07:32 AM

(Adds details, background)

BERLIN, April 20 (Reuters) - The German economy fell deeper into recession in the first quarter of 2009, the Bundesbank said on Monday, further fuelling expectations of a record contraction in gross domestic product (GDP) to start the year.

In the fourth quarter of 2008, the German economy contracted at it fastest quarterly pace since reunification in 1990, and last week the economy ministry said it expected the first quarter of this year to show a steeper fall.

"The recessionary trend has intensified further in the first quarter of 2009 after real quarterly GDP fell 2.1 percent in the fourth quarter of 2008 in seasonally adjusted terms," the Bundesbank said in its April report.

The statistics office is due to release first quarter GDP data on May 15.

The Bundesbank said preliminary first quarter data showed weakness in exports -- the key reason for the economy's woes at the end of 2008 -- was having a rising impact on domestic economic drivers.

It pointed to sharp cuts in capital equipment outlays by companies, the impact of poor winter weather on construction and inventory pressures.

"Private consumption, on the other hand, had a stabilising effect on the economy in the first quarter. The measures in the government's second stimulus package to encourage purchases of new cars played a particular role,2 the Bundesbank said. (Reporting by Brian Rohan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.