France enters recession as Germany splutters along

vivatifosi

More breaking news, this time from the Beeb:

http://www.bbc.co.uk/news/business-22536197

The French economy has entered recession after shrinking by 0.2% in the first quarter of the year.
France's economy shrank by the same amount in the last quarter of 2012. A recession is defined as two consecutive quarters of negative growth.
France has record unemployment and low business and consumer confidence.
German growth figures have also been released, showing its economy, the strongest in the eurozone, grew by just 0.1% in the first quarter of the year.
That was well below the 0.3% growth expected in a poll of economists.
Preliminary figures from the Statistics Office also showed the German economy had shrunk by 1.4%, when compared with a year ago.


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Not good news. Sorry for not adding fuller info, have to go to work shortly.

HAMISH_MCTAVISH

Preliminary figures from the Statistics Office also showed the German economy had shrunk by 1.4%, when compared with a year ago.

Wonder how many Germans have to become unemployed before they figure out that killing your main trading partners economies through overly cautious monetary policy is a bad thing?

sheffield_lad

Proof if needed that saying no austerity and growth sounds great but....its not as easy as that.

You can't just make growth but you can cut your cloth and try balancing the books.

Rinoa

vivatifosi wrote: »

The French economy has entered recession after shrinking by 0.2% in the first quarter of the year.
France's economy shrank by the same amount in the last quarter of 2012. A recession is defined as two consecutive quarters of negative growth.
France has record unemployment and low business and consumer confidence.
German growth figures have also been released, showing its economy, the strongest in the eurozone, grew by just 0.1% in the first quarter of the year.
That was well below the 0.3% growth expected in a poll of economists.
Preliminary figures from the Statistics Office also showed the German economy had shrunk by 1.4%, when compared with a year ago.

Hmmm, I wonder if Christine Lagarde will be giving them a stern lecture on what they're doing wrong.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Wonder how many Germans have to become unemployed before they figure out that killing your main trading partners economies through overly cautious monetary policy is a bad thing?

It wasn't overly cautious monetry policy that created the problems. It's exactly what you call for to solve the problems that created them.

chewmylegoff

I don't think the German shrinkage of 1.4% can be right since their economy grew throughout 2012 except for a contraction of about 0.5% in Q4 and they are showing growth for Q1 2013. Maybe they are more creative with maths than me though.

michaels

vivatifosi wrote: »

More breaking news, this time from the Beeb:

http://www.bbc.co.uk/news/business-22536197

The French economy has entered recession after shrinking by 0.2% in the first quarter of the year.
France's economy shrank by the same amount in the last quarter of 2012. A recession is defined as two consecutive quarters of negative growth.
France has record unemployment and low business and consumer confidence.
German growth figures have also been released, showing its economy, the strongest in the eurozone, grew by just 0.1% in the first quarter of the year.
That was well below the 0.3% growth expected in a poll of economists.
Preliminary figures from the Statistics Office also showed the German economy had shrunk by 1.4%, when compared with a year ago.


Article continues


Not good news. Sorry for not adding fuller info, have to go to work shortly.

Hmm - France, probably seen as a role model/poster child for what Ed and Ed would say a labour govt would look like is in deep do-doo. I wonder if DLW and Moby will be along to comment?

Generali

HAMISH_MCTAVISH wrote: »

Wonder how many Germans have to become unemployed before they figure out that killing your main trading partners economies through overly cautious monetary policy is a bad thing?

I suggest that the primary lesson that you can't live beyond your means indefinitely has been well learned.

The secondary lesson which is that you can't earn your living by selling to those living beyond their means indefinitely is just starting to sink in.

grizzly1911

Generali wrote: »

The secondary lesson which is that you can't earn your living by selling to those living beyond their means indefinitely is just starting to sink in.

Or by selling to those you have encouraged to live beyond their means by providing loans and grants to boost investment with no plan as to how sustain that growth long term.

ruggedtoast

There was a German government finance bod on the radio the other week. The interviewer asked them if they feel bad about punishing the monetary midgets that surround them.

He replied that Germany had to go through a painful restructure in the 90s after reunification and now these other EU countries have to do the same.

I thought Germany was socialised up the wazoo in terms of hiring and firing but they seem to genuinely believe they have flagellated themselves on the whips of the free market and now others must follow suit, toot de sweet.

Thrugelmir

ruggedtoast wrote: »

I thought Germany was socialised up the wazoo in terms of hiring and firing but they seem to genuinely believe they have flagellated themselves on the whips of the free market and now others must follow suit, toot de sweet.

Reunification came at a huge cost. Which the German people accepted with minimal increases in pay for many years. So hardly surprising that their attitude is that countries should tackle their own issues. Not expect to receive hand outs.