It’s not just us! Germany and France are on brink of recession too as euro crisis crushes their economies
14 February 2013
Germany and France suffered nasty economic shocks today as fallout from the euro crisis pushed the two biggest single currency members to the brink of recession.
The German economy has slammed into reverse, with a 0.6 per cent contraction in the final three months of 2012 – the country’s worst performance since the global financial crisis raged in 2009.
Worryingly for Berlin, it was exports, the motor of the economy, that did most of the damage.
France held up slightly better but its 0.3 per cent contraction at the end of last year also undershot forecasts.
If Germany and France shrink again in the current quarter, they will be officially back in recession – the same prospect that faces the UK, which also contracted 0.3 per cent at the end of 2012. A recession means two quarters in a row of negative growth.