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Growth in Euro Zone Stalls, Slowing Debt Crisis Solution
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The German Statistical Office reported that GDP growth in Germany was 0.1% in the second quarter of 2011. This compares with GDP growth of 1.3% in the first quarter. This is slower than Italy which came in at 0.3% for the second quarter. France had no growth in the second quarter. The German Statistical Office said the causes were: lower household consumption and construction investment, imports rising faster than exports and a buildup of inventories. Analysts at Commerzbank say the warm spring resulted in construction activity starting earlier and taking out some of the growth in the second quarter, in its absence the growth would be 0.4% for the second quarter. The statistics office said an additional 553,000 persons were added to employment compared to the prior year, with a total of 41 million employed.
Germany's economy- 2009-2013
01/14/2010
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About half a million jobs were saved by one estimate through the German government sharing the costs of labor retention with industry during the last downturn. The program is known as "kurzarbeit" in Germany and is accepted by the German public, workers and business as a better way to handle the cyclical swings in the economy. The lack of a similiar program in the U.S. means a larger loss of jobs in the U.S., which is being painfully felt in 2011-2012. U.S. programs focussed on a stimulus measure and government spending, not on a program of joint cooperation between industry and government such as "kurzarbeit." There is no history of such cooperation in the U.S. and the government is seen more in the sense of intervention than cooperation with industry.
Grouped Articles
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Europe Moving Toward Small Steps to Promote Growth
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