Gross Domestic Product – German economy shrinks – Süddeutsche.de

Gross Domestic Product – German economy shrinks – Süddeutsche.de

After a year of recovery, the German gross domestic product fell by 0.2 percent. For the first time, the statisticians have factored the economic power of drug dealers and cigarette smugglers.

recovery after one year completed

The German economy shrank in the second quarter for the first time since early 2013. The gross domestic product (GDP) fell in the period from April to the end of June 2014 compared to the previous quarter upon price, seasonal and calendar-adjusted 0.2 percent, writes the Federal Statistical Office. Finally, the economy shrank by 0.4 percent in the first quarter of 2013. In the GDP of the value of all goods and services flows that are produced within a country.

Ukraine crisis also weighed German Economy

At the beginning of the year was Germany’s economy with a growth of 0.7 percent in the upswing. The construction industry is approximately benefited from the mild winter. In summer, several crises unsettled businesses and many consumers, especially the conflict between Russia and Ukraine, and the situation in the Middle East world. Which could not entirely escape the export nation Germany. Exports increased according to the Federal Office compared with the previous quarter, less than imports, therefore, the important exports had a negative impact on the German economy development. In addition, the usual spring revival fell after the exceptionally strong start from weaker. Consumption continued to develop positively.

drug trade is now part of the GDP

The Federal Statistical Office for the first time applied the new European rules for the calculation of GDP. This increase, for example, drug trafficking, cigarette smuggling and the purchase of tanks, economic performance. Germany’s economic output could thus calculated to increase by about three percent. The new rules are mandatory from 1 September for the EU countries. Then the Federal Office will publish detailed figures for the second quarter

state budgets debt are well

When will Germany pay back its debt? “Hopefully never,” says Finance Minister Schäuble – and is right with it. Countries with stable economic performance, such as Germany and the United States and may have to borrow money. The fear is fed down the pub. This hysteria can be life-threatening states.