From Reuters (via the Financial Times):
Germany’s economy teetered on the brink of its third technical recession in four years at the end of 2004, data showed on Tuesday, but the government and analysts ruled out another slump despite soaring unemployment.
Germany’s Federal Statistics Office reported the gross domestic product of Europe’s biggest economy unexpectedly shrank 0.2 percent from the previous quarter and published revised data showing no growth at all in the July through September period.
Analysts said Germany’s weak showing lowered the chances of a broader pick-up across the euro zone late last year and may also argue against a rate rise from the European Central Bank.
The data dealt a fresh blow to the government, coming two weeks after figures showing unemployment at the highest level since 1933 and just days before a regional election.
But maybe this, from the ZEW Research Institute, is good news:
The ZEW Indicator of Economic Sentiment for Germany clearly increases by +9.0 points in February. It now stands at +35.9 points following +26.9 points in January. Thus, the indicator again stands approximately at its historical average of +34.4 points.
A striking rise of incoming orders in December may have made a positive contribution to this development. Particularly national demand for investment goods generated the highest monthly value in ten years. Therefore, this could be interpreted as a signal for an economic upturn in Germany in 2005. “Fortunately, the expectations of the financial market analysts indicate a more stable upward trend of the domestic economy than skeptics assumed”, comments ZEW-President Prof. Dr. Dr. h.c. mult. Wolfgang Franz. Historically low interest rates and the fact that the oil and foreign exchange markets continued to calm down may also have contributed to increasing optimism.