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Germany Posts Month 21 of Declining Jobless Rate

New York Times Original article ›

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German unemployment is falling since 2005 when it peaked at 5 million unemployed. Its down by 711,000 in 2007. The unemployment rate is now down to 8.4% and should continue falling. Causes are several trends, a strong external economy means higher exports to Asia, Russia and the Middle East. And demographics with aging population and fewer working age people means jobs created fill the ranks of fewer people available to work. But this trend may be slowed by a further strengthening of the euro, a global slowdown, or a minimum wage that is on the high side 7-8 euros instead of 5-6 euros.

Shifting sentiment for Stimulus in France and Germany as job losses mount.

01/04/2008

German GDP contraction according to Commerzbank estimates in late March show 6-7% GDP contraction in 2009. France with a smaller capital goods industy, is projected to drop 4%. Sentiment in both countries is shifting to larger Stimulus.

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