After Singapore, it is Germany’s turn now to slip into recession after its quarterly GDP growth tumbling helplessly to its second consecutive contractions.
It became the second country from the European continent to have fallen into a technical economic downturn after Ireland.
The country’s largest corporations are now in panic as major losses and retrenchment exercises seem the likelihood. Stocks and inventories are piling up, and businesses are cutting up expenditures. Some of them are expected to close down businesses in the next few weeks.
This might as well be the end of of Germany’s era as the largest economy in the country.
A country is considered to be technically in an official recession when it records two successive quarters of negative GDP growth. Just like Singapore, Germany’s economy relies heavily on export industry and with the export demand especially from the United States nose diving to a new low, the results are inevitable. As the global financial crisis intensified, analysts are predicting the United Kingdom to be next in recession, followed by Italy and Netherlands.
The world is facing its worst financial crisis in 80 years, triggered by the collapse of the housing market in the US, which rippled through every other industry and continent.