Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Wednesday, April 23, 2014  

Germany loses pace, may grow 0.8% this year
BERLIN German industrial output fell more than forecast in September and the government’s economic advisers said the economy would grow by just 0.8 per cent this year and next as Europe’s largest economy gets dragged deeper into the euro zone crisis.

Recent data from Germany, Europe’s growth locomotive and paymaster, has been largely disappointing, with business sentiment worsening, the private sector contracting, joblessness rising and industrial orders falling at their sharpest rate in a year, though consumer morale has held up and exports have leapt.

Wednesday’s data added to the gloom, showing that industrial production dropped by a hefty 1.8 per cent on the month in September, well below the consensus forecast in a Reuters poll for a 0.5 per cent drop.

“The euro zone crisis is hitting the domestic economy. German companies seem to be less and less inclined to invest and that points to the economy contracting in the fourth quarter,” said Stefan Schilbe at HSBC Trinkaus.

Economic advisers to the government, traditionally known as the “wise men”, dampened spirits further by forecasting growth of 0.8 per cent this year and next, undercutting the Economy Ministry’s forecast for expansion of 1 per cent in 2013.

“The low-point of economic momentum in Germany will probably be reached in the fourth quarter,” the advisers wrote in their annual report. “We expect the German economy to pick up some steam again during 2013.”

Germany may have managed to consolidate its budget well this year but it cannot rely on strong tax revenues and “special factors” such as low interest on debt, the advisers warned. Moreover, it will likely have to contend with rising spending in the future due to an ageing population.

While Germany’s economy long fended off the single currency bloc’s troubles, expanding by 4.2 per cent in 2010 and 3 per cent last year, growth slowed to 0.3 per cent in the second quarter of this year from 0.5 per cent in the first and some economists expect a contraction in the fourth quarter.

Economy Ministry data showed factories churned out 2.2 per cent fewer intermediate goods and 3.5 per cent fewer capital goods on a monthly basis in September, dragging overall output down. Activity in the construction sector, which rose by 2.7 per cent on the month, was the only bright spot.

“Industrial production in the fourth quarter will be weighed down by weak order levels,” the ministry said.

“With the various industrial survey indicators pointing to steeper falls in production ahead, Germany’s growth engine is still sputtering, if not in reverse,” said Jonathon Loynes, chief European economist at Capital Economics.

Industrial production data for August was revised up to a drop of 0.4 per cent from a decrease of 0.5 per cent.

Reuters
NEWS UPDATES
Oman
HM receives credentials of five ambassadors
Shura Council panel holds meeting
NDC Commandant receives Pak delegation
Sultanate to take part in Cairo Arado forum
140 varsities attend Ghedex
Shura panel set to review Tender Board law issues
Food safety exhibition gets under way
India
Modi disapproves of ‘petty remarks by well-wishers’
Giriraj banned from taking part in Bihar campaign
Congress pulls all stops to defend ‘private individual’ Vadra
Modi has ‘sidelined’ top leaders of BJP
Congress releases hate speech CD
31.7m to vote in Maharashtra
Government did not act on black money ‘directive’
Militants kill 2 village council heads in J&K, issue warning against voting
Teachers force lower caste, Muslim students to ‘clean toilets’
Delhi Police colluded with 1984 anti-Sikh rioters, claims Cobrapost
Sonia’s emotional appeal shows Congress’ fears in Amethi
Pakistan
Senators ask ISI to clear name in scribe attacks, missing cases
Supreme Court stays ASWJ leader’s election
Cops among nine killed in Peshawar violence
Bulldozers turn widow’s home to rubble
Punjab puts 700 sectarian attackers behind bars
Middle East
26 die in attacks as Iraq set for parliament poll
Saudi Arabia reports 17 new cases of Mers, death toll at 81
Libya starts registration of voters for elections
Lebanon MPs to cast vote today to choose president
Former German rapper who joined Isil killed in Syria attack
1 in 5 Iran couples sought divorce in ’13
Asia
US soldiers on Afghan soil to be below 10,000
S. Korea ferry death toll hits 108 as divers speed up recovery bid
Brunei delays implementation of Islamic law amid criticism
Pacifist Japan’s military turns on charm offensive, wins hearts
Submarine drone to continue plane hunt
S. Lanka detains UK tourist over Buddha tattoo
Manila scam mastermind vows to tell all
Business
Arab banks expand across ME as global banks retreat
Mulally to leave Ford, Fields to take over as CEO
Gold extends losses for fourth day
S.Korea posts 4.3% rise in exports
Sensex, Nifty hit record high for second day in row
HDFC Bank Q4 net rises 23%
Toyota India resumes full operations as workers return
India’s gold imports suffer as poll-linked curbs dent buying power
Weak shipments to China hurt Japan’s exports
Novartis, GSK reshape drug industry
Europe
Separatists seize Ukraine building despite peace deal
Sweden aims at boosting defence spending citing threat from Russia
Spanish art fraud suspect freed, to fight US extradition
Russia using energy superpower status to hold others to ransom: UK
Dissenters voice doubts over John Paul II sainthood
Erdogan cracks whip on workers May Day rallies
Sports
Ahmad makes sensational winning start
United show Moyes the door after one season, appoint Giggs interim manager
Van Gaal frontrunner to replace Moyes
‘Moyes sacking showed a lack of decency’
Argentines have a hand in City win as they close gap on Reds
Capello maps out Russia’s path to WC
Grizzlies, Clippers win to level playoff matchups
Ronaldo set to make up for lost time
Ahli Bank win thriller to reach final
Indian School Wadi Kabir, Indian School Ghubra record win
Soft Ball Cricket Tournament held
Maxwell whirlwind torments Hyderabad
Martinez wins on TKO, retains title

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution