German economy down 5%, worst slump since WWII

The figure published by the German Federal Statistical Office was in line with government predictions but slightly worse than the 4.8 percent contraction widely predicted by analysts.

"What was striking in 2009 is that both exports and capital formation in machinery and equipment slumped heavily," the office said in a statement. "Foreign trade, which in previous years had been a major driving force for growth in the German economy, slowed down economic development in 2009."

Exports were down a price-adjusted 14.7 percent, while imports were down 8.9 percent, the office said.

The worst postwar performance to date was a 0.9 percent decline in West Germany's gross domestic product in 1975. The worst since German reunification was a 0.8 percent fall in 1993.

For the full year of 2009, an average of 3.423 million Germans were out of work, an increase of 155,000 as compared with 2008, for a yearly unemployment rate of 8.2 percent.

The government is predicting growth of 1.2 percent in 2010.

German Economy Minister Rainer Bruederle said that since the worst of the world financial crisis, the German economy had noticeably recovered; Kazinform cites China Daily. See www.chinadaily.com.cn for full version.