LONDON — It seems like exceptionally good news. Germany, Europe’s biggest economy, has just confounded expectations and emerged from its recession, thanks to reporting a quarter-on-quarter growth rate of 0.3% for the second quarter, instead of the contraction of 0.2% that was expected. A margin of 50 basis points is quite a difference–but don’t get too excited.
The real reason Germany’s economy was able to post growth was that its government has been doing everything it can to stimulate domestic demand. Germany is one of the world’s biggest exporters–think cars, chemicals and engineering services–and with the collapse of global consumer demand for goods, the state has enacted policies to keep its citizens buying things.
And from Focus Online, Rezession in der Eurozone so gut wie beendet, which is to say, “Recession in the Euro Zone as good as ended.”
UPDATE:(2:45 p.m.): From Der Spiegel:
Germany and France, Europe’s two largest economies, on Thursday revealed they are officially no longer in recession. Signs of economic green shoots bolstered the euro — and surprised both policymakers and economists. The euro zone economy, however, continues to contract.
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