Germany’s Economy Shrinks The Highest Postwar

Germany’s economy has shrunk by more than what economists forecasted last year. According to the Federal Statistics Office Destatis, Germany's economy contracted by 5%, exceeding the forecasts of a 4.8% contraction from the 2008 levels.

The global recession specifically affected Germany's manufacturing sector, which is heavily geared towards exports and capital goods. While investments in plant and machinery slumped by 20% y/y, exports dropped by 14.7% and imports by 8.9%.

Germany’s budget deficit amounted to €77.2 billion (or $111.86 billion), reflecting 3.2% of the nation’s GDP. The country’s budget was in balance in 2008.