This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8051332.stm

The article has changed 7 times. There is an RSS feed of changes available.

Version 2 Version 3
German economy in record decline Eurozone economies contract 2.5%
(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 economies of the 16 countries that make up the eurozone declined by 2.5% in the first three months of 2009, the EU's statistics agency Eurostat 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. The fall was bigger than expected, with analysts forecasting a 2% drop. A fall in German exports was a key factor.
Meanwhile provisional data showed the French economy shrank 1.2% in the first quarter, in line with forecasts. The German economy suffered its largest contraction since reunification, falling 3.8% in the first three months of the year.
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.
And provisional data showed the French economy shrank 1.2% in the first quarter, in line with forecasts.
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.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%.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. Meanwhile Italy's GDP declined 2.4% in the first quarter - the largest fall since records began in 1980, statistics agency ISTAT said.
'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%.The fourth quarter of 2008 had previously been the worst on record, with GDP falling by a revised 2.2%.