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Europeâs economic engine stalls
Germanyâs economy - for so long the engine of EU economic growth - slipped into reverse for the first time since 1993, official figures published yesterday have shown. Economic growth in Germany declined by 0.1 percent in 2003 after two years of flirting with recession. Germany remains close to the bottom of the EU economic league table, with only Portugal and the Netherlands registering slower growth. The negative growth in the EUâs largest economy was caused by two main factors: weak domestic consumption and shrinking exports outside the euro zone. German consumers, worried about high unemployment and economic uncertainty, were reluctant to spend last year, slowing the economy. Meanwhile, the rise in the euro has hit export-led Germany especially hard. Exports to the US were down by 9.7 percent in the first ten months of last year. But the German government is hoping for better times ahead. Economics minister Wolfgang Clement projects growth of 1.5 - 2 percent for this year, as the upturn in the world economy pulls Germany out of recession. Europeâs economy as a whole will be discussed by Germany, France and the UK during a meeting on 18 February. Employment and innovation will be the main items on the agenda.Posted by: rkb 2004-01-16 |
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