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| Version 1 | Version 2 |
|---|---|
| German economy in record decline | German economy in record decline |
| (about 1 hour later) | |
| The German economy suffered its largest contraction since reunification in the first three months of the year, official data has shown. | The German economy suffered its largest contraction since reunification in the first three months of the year, official data has shown. |
| Gross domestic product (GDP) fell 3.8% from the previous quarter, led by sharp falls in exports and investment, the Federal Statistics Office said. | Gross domestic product (GDP) fell 3.8% from the previous quarter, led by sharp falls in exports and investment, the Federal Statistics Office said. |
| Meanwhile provisional data showed the French economy shrank 1.2% in the first quarter, in line with forecasts. | Meanwhile provisional data showed the French economy shrank 1.2% in the first quarter, in line with forecasts. |
| GDP measures the value of all goods and services produced in a country. | GDP measures the value of all goods and services produced in a country. |
| The fall in French GDP, reported by the statistics office Insee, was smaller than the 1.5% drop seen in the previous quarter. | The fall in French GDP, reported by the statistics office Insee, was smaller than the 1.5% drop seen in the previous quarter. |
| In a statement, the Economy Ministry said it expected the French economy to contract by 3% in 2009. | In a statement, the Economy Ministry said it expected the French economy to contract by 3% in 2009. |
| The German government has predicted the economy will shrink 6% this year. | The German government has predicted the economy will shrink 6% this year. |
| That is a more downbeat forecast than the European Commission's. | |
| The Commission expects Germany, Europe's biggest economy, to contract 5.4% this year, while it predicts economic activity in France will drop 3%. | |
| GDP data for the eurozone is expected later. | |
| 'Uncertainty shock' | 'Uncertainty shock' |
| Year-on-year the economy shrank by 6.7%. | Year-on-year the economy shrank by 6.7%. |
| The decrease in exports was markedly larger than that of imports, the Statistics Office said. | The decrease in exports was markedly larger than that of imports, the Statistics Office said. |
| The severity of the contraction surprised economists. | The severity of the contraction surprised economists. |
| "The figures came in a bit worse than even we had expected and are significantly worse than the consensus," said Joerg Kraemer from Commerzbank. | "The figures came in a bit worse than even we had expected and are significantly worse than the consensus," said Joerg Kraemer from Commerzbank. |
| "In the first quarter, the German economy fell victim to the 'uncertainty shock', which has gripped the world economy since the collapse of Lehman Brothers." | "In the first quarter, the German economy fell victim to the 'uncertainty shock', which has gripped the world economy since the collapse of Lehman Brothers." |
| The fourth quarter of 2008 had previously been the worst on record, with GDP falling by a revised 2.2%. |