That fall led to a sharp contraction in German growth. In the first 3 months of the year, while Britain's economy shrank by 4.9% on an annualised basis, the contraction in Germany was 6.7%.BBC NEWS | Business | Why are France and Germany out of recession?
From the height of the boom to the depth of the recession, the fall in output in Germany was much greater than in the UK.
But as the global economy has started to recover, German firms have been cranking up production lines and rebuilding stock levels.
They have also been responding to a pick-up in domestic demand, all of which has contributed to growth.
Meanwhile, the financial sector generally is recovering too, but few expect it will ever return to the levels of activity seen prior to the credit crunch, so that will have a lasting impact in the UK.
Friday, August 14, 2009
BBC NEWS | Business | Why are France and Germany out of recession?
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