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
Saturday, April 19, 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
Sultanate, Malaysia seek to boost media relations
New sophisticated wholesale fish market opens in Barka tomorrow
GUtech eco-preservation talk show to centre on Galapagos Islands
Rural and Urban Areas Days event comes to a close in Ibri
Other Top Stories
Ferry captain ‘was not at helm’
Divers enter ferry cabin, no survivors found
Danwon school under emotional lock-down, students still in shock
‘Surviving alone is too painful’
Teheran against acts of aggression, says Rowhani
12 Nepalese guides die in deadliest Everest accident
Abducted Nigeria girls not freed, admits military
India
I will not divide country in name of secularism: Modi
BJP alliance with TDP to continue in Seemandhra
Ajit Pawar threatens to cut off water supply to villagers over votes: AAP
EC decision on Shah triggers controversy
BJP a ‘threat to democracy’
Osama look-alike to challenge Modi in Varanasi
PMO rubbishes Baru’s remarks against Singh
Court asks coal firms to respond to power generation company charges
CBI quizzes Koda over coal block allocation scam
CBI chief meets Indian envoy in Italy over helicopter deal probe
First double-decker flyover opens in Mumbai
Pakistan
Government to hold fresh talks with TTP today
Guava crates help police trace culprits behind market bombing
Cabinet gives green signal to import of power, LNG
Court seeks legal experts’ help in abandoned kids’ adoption issue
US sees better trade ties between Pakistan, India
5 varsities to go through audit mill
Middle East
Bouteflika wins re-election, opposition parties cry fraud
Egyptian security forces live in fear of ‘unseen enemy’
Landmine blast kills Tunisian soldier on Algerian border
Libya mulls ‘smart cards’ to cut fuel subsidies
Iraqi guilty of beating wife to death in US
Marzouki to take two-thirds pay cut as austerity bites
Asia
Japanese move to arm island to strain China ties
Malaysia, Australia to sign deal on MH370 wreckage custody
China jails four activists over anti-graft protests
Search for missing Malaysia plane to be costliest in aviation history
Failure to control N-water issue at Fukushima ‘embarrassing’
Japan to redesign whale hunt mission
Business
Russia’s ties with oil firms ‘intact’ despite curbs
Wal-Mart’s money transfer business foray to help low-income customers
Japanese firms’ investments in SE Asia surge amid China slump
Iran oil exports rise to 1.2mbpd
RIL Q4 profits rise to $932m, sales soar 13%
5 Indian firms plan to buy back shares
FIIs raise stake in 16 Indian companies in March quarter
India, China to lead growth in global aviation market over next decade
DoT approaches Trai for next round of spectrum auction
Kassab launches major expansion programme
Investments in P-Notes hit three-year high
Glenmark recalls ulcer drug in US
China home price inflation slows to eight-month low
US-Japan trade deal in stalemate as negotiators struggle to narrow gaps
Investors seek support from creditors to save Mt Gox
Fed’s bond purchases ‘twice as effective’ as BoE’s at boosting growth
Europe
Military-led drive against terrorists to continue: Kiev
Setback for Hollande as aide quits in conflict of interest row
Gul rules out Russia-style job swap with Erdogan
Turkey minister seeks price reduction for Russia gas
3 dead after boat capsizes off Spain
Miliband party hires Obama strategist for poll
Sports
Maxwell reigns supreme in battle of Kings
Trott readies to take another break from all forms of cricket, says ECB
Westwood extends lead in Malaysia
Kuchar in three-way lead at PGA Heritage
Stanford seizes LPGA Lotte Championship lead
Hanover beat fellow struggler Frankfurt
Pakistan’s Ajmal cleared for county cricket
Liverpool trio shortlisted for PFA player of the year
Heat seek Three-peat but Spurs, Pacers top seeds
PCB sacks Khan, begins search for coach
Ferrer ends Nadal’s claycourt win streak
Nadal admits lack of confidence
Stars face PCB probe for playing with Kaneria
Rahane, Binny secure Rajasthan win
Cibulkova scrapes into Malaysian Open semis
Hamilton leads second practice at Chinese Grand Prix
Americas
Obama budget ‘to boost tax revenue, reduce deficits’
Students add Easter touch to demonstrations in Venezuela
Brazil cops end strike; murders, looting reported
Stop saying sorry for Obamacare, Democrats told
Ford hits poll trail after drugs scandal
‘Hate online forums’ responsible for racist murders, mass killings

Sports


International

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