kaya'08
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The German economy grew by 2.2% in the three months to the end of June, its fastest quarterly growth in more than 20 years, official figures show.
"Such quarter-on-quarter growth has never been recorded before in reunified Germany," the national statistics office, Destatis, said.
The main reason for the higher-than-expected growth was strong exports, helped by a weaker euro.
Inflation is up as well, there's no growth in real terms.
Exactly, economists would never think to take a factor like inflation into consideration... right.
Well, if they did please be so kind to educate me. I'm also quite interested to get your view on how inflation is calculated and whether it's political or not. Do they take population growth, public (over)spending and tax increases into account. Real terms; is the german economy growing/producing more and is the purchasing power of the avg german increasing or not. Thanks!
I assume you do the homework before commenting on my posts or simply ask me to explain my position. It's a pity you don't want to answer my questions, unlike others I do not demand evidence all the time, I can simply state I don't share a certain assertion.I'd sooner trust the opinion of Eurostat along with the German finance and economic ministers rather than assume there is some sort of mistake or error on their part, especially when neither of us have the knowledge, data, or education to make a better argument or calculation.
Now I'm not going to spend my time researching exactly how Eurostat and the other economic and financial bodies in Europe and Germany calculate their numbers, simply to prove your unsupported statement that "Inflation is up as well, there's no growth in real terms" false. Its your responsibility to prove your own statement true and find reliable sources to back up your claim, one simply cannot make a statement and then expect another to prove it wrong, you have that burden of proof.
So instead of giving me a homework assignment, you should dig through all the numbers, data, and whatever else and tell me exactly where the considerations for inflation, and any other factor or variable you assume are missing, should be going and where they are missing.
Until then the little debate about whether the German economy has really grown by 2.2% percent, or if it has grown at all has the Eurostat, German government, and several other reputable sources on the side and supporting the statement that it has in fact grown, and in the opposition there's you and your key board.
German investor confidence sees sharp drop
German investor confidence has fallen sharply this month on fears that the strong economic growth recorded in the second quarter will not last.
The ZEW Indicator of Economic Sentiment fell from 21.2 in July to 14 in August - its lowest level since April 2009.
The German economy grew by 2.2% in the three months to June, its fastest quarterly growth in more than 20 years.
But ZEW said Germany's dependence on exports meant any slowdown abroad posed "major risks" to growth.
Analysts had expected a much smaller drop in the index to about 20 or 21. BBC Business Pages
Unfortunately, it may not last.
Either way, we are still in for a long slow recovery from where we were 2-3 years ago.
We shall see. Media have a bad tendency lately of talking down economies to worse than they are...
Agreed - however I don't think ZEW or BHF Bank which are the sources used by the BBC article are in the Media. It sounds like investors rather than media.
The Eurozone and the UK present a number of austerity plans and most see more economic recovery (Greece being a notable exception). The US shows no signs of implementing significant anti-deficit measures and sees its recovery weaken. Now clearly there will be more factors involved than just that, but it seems like austerity isn't bringing on the dreaded stalled recovery we've been warned about.
The Eurozone and the UK present a number of austerity plans and most see more economic recovery (Greece being a notable exception). The US shows no signs of implementing significant anti-deficit measures and sees its recovery weaken. Now clearly there will be more factors involved than just that, but it seems like austerity isn't bringing on the dreaded stalled recovery we've been warned about.
Any ways, a bit off track on the German economy, but I personally am far more optimistic now than I was 5 years ago or even 3 years ago.
Regarding the German economy, I have been optimistic of it to a greater degree then that of most other European economies, or the US for many years. It has been making slow changes to its labour laws, has many internationally competitive industries, a trade and current account surplus and a high savings rate.
All things that point to a strong stable economic foundation
A country growth based on construction, financial (unless it is small) and has a low savings rate, a current account deficit, along with a large governmental deficit are not a basis for a strong stable economy
ARGH, that is impossible to read!
The UK government cuts have not fully taken place yet, when they do, economic growth will drop in the UK fairly deeply just as it has in Ireland, Greece, and Iceland.
The UK, Ireland and Greeece willhave to make dras tic changes to become competitive on the world eco nomy, Germanyalreadyis
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