In the end, there’s no way for an export-heavy economy to thrive while the economies of its import-heavy neighbours collapse. Shocker!Germany GDP in the last quarter just clocked in at a horrible 0.1%, which is well below the 0.5% that analysts had expected and sharply lower than the 1.3% that it saw last month.
That’s contributing to heavy selling in Europe and the US today.
Given that Germany had been seen as a stalwart of safety, this has to raise fears of recession for everyone right now.
Also on the Germany front today: Angela Merkel is meeting with Nicolas Sarkozy on the crisis in Europe. Expect interesting headlines later.