German economy set to slide ‘sideways’

Currency Calculator  App

The German economy is set to take a ‘sideways’ step over the next few months as the Euro-zone’s growing debt crisis worsens.

According to Bundesbank, the nation’s central bank, a “sideways movement is looming for the German economy.”

Germany has upheld relatively well against its European counterparts in the fight against the recession. However, the near collapse of the Euro-zone last year has plunged Germany into a state of economic woe.

"Manufacturing in particular has suffered from the global economic slowdown and repercussions from the euro-zone's sovereign debt crisis," the bank said in its monthly report.

The country’s economy shrunk by 0.25 % in the last three months of 2011 compared to the previous quarter.

Overall, however, the German economy grew by 3% for the second consecutive year. Growth has remained at 3% or more throughout this period, strengthening the country’s exports.

Despite this, the Bundesbank slashed its forecast for German growth over 2012 to 0.6%, much lower than the previous year.

This economic outlook prediction is half of what the bank forecast in June at 1.8%.

The bank claims that private consumption has ‘barely risen’ in the last quarter of 2011 despite Germany’s reasonably stable labour market. Unemployment in the country is at a two decade low of 6.8%, which could be considered impressive compared to neighbouring countries.

The UK has an unemployment rate of 8.4%, the highest since 1995. France has an unemployment rate of 9.8%, the highest since 1999.

Transferring money to Germany

If you are looking to invest in Germany, think carefully about how you will be transferring money to Germany. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are looking to send money to Germany – which you will inevitably have to do if you are looking to make a property investment - be sure to compare the market before you buy your overseas currency.

Company Details

German economy set to slide ‘sideways’

Get a quick quote

Open Account with International Foreign Exchange

International Foreign Exchange are located at:
52 Brook Street, Mayfair, Greater London, W1K 5DS, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882