German economy sees 'record' growth of 2.2%

[Jeffersons Ghost]

The German economy grew by 2.2% in the three months to the end of June, its fastest quarterly growth in more than 20 years, official figures show.

"Such quarter-on-quarter growth has never been recorded before in reunified Germany," the national statistics office, Destatis, said.

The main reason for the higher-than-expected growth was strong exports, helped by a weaker euro.

The eurozone economy grew by 1% during the quarter. This compares with growth of 0.2% in the first three months of the year, the area's official statistics agency, Eurostat, said.

http://www.bbc.co.uk/news/business-10962017

[SmileyRose]

1. Damn unions.

:sarcasm:

[pampango]

3. "Germans, with their powerful unions ... have a real voice in their employment."

"The present-day system of worker involvement with their employers was put in place by American New Dealers and British Labour Party socialists after the defeat of Nazi Germany in 1945. They wanted to prevent a repeat of the close collaboration of the country's manufacturers with the Nazi regime and figured that with workers on the board of directors, this wouldn't happen.

Social democracy may let us live nicer lives; it also may be the only way to be globally competitive. His anecdotal book helps us understand why the European model, contrary to popular neoliberal wisdom, may thrive well into the twenty-first century without compromising its citizens' ease of living — and be the best example for the United States to follow."

http://www.huntingtonnews.net/columns/100807-kinchen-columnsbookreview.html

[burnsei sensei]

7. +1

Unions support prosperity, they do no undermine it.
The more powerful they can be, the more people are empowered.
Unions are democratic.

[liberal N proud]

2. But the Democrats and Obama are keeping this economy down

:sarcasm:

[JVS]

4. "The main reason for the higher-than-expected growth was strong exports, helped by a weaker euro. "

This is not surprising. The Bundesbank was traditionally very tight with its currency, knowing that it hurt employment and growth by doing so.


On the other hand, the Eurobank generally acts as a continuation of the Bundesbank in terms of policy and it might be because of some of their tradition of tight money that they have room to make adjustments to the interest rates, while the US had already slashed them before the crisis hit.

[DemocratSinceBirth]

5. Is That An Annualized Rate Because A 2.2 Growth Rate Is Anemic

The American economy would have to expand at a rate of 3% just for unemployment to remain constant.

[TheWebHead]

6. it's quarter to quarter

but it's mostly due to the steep decline in the euro during that 3 month period.

[closeupready]

15. It's like 8.8% annual growth.

n/t

[doc03]

8. You guys got it all wrong according to Joe

Scarborough it is because Germany has adopted Reaganomics. It's all because the EU countries cut spending and are reducing their deficit. That will be the Republican talking point of the day at Faux I bet, I can't stomach watching Faux but I will hear about it from my Rethug friends.

[OHdem10]

9. Germany insisted on and maintained her mfg. base. Would not

permit the wild outsourcing of our Free Traders.

Those Social Democracies.

2% does not set the world on fire but if they continue
to climb and say, France joins them---might be our
hope. At some point, they might be able to buy a few
of our products.

[deaniac21]

10. 2 % SUCKS. The US numbers are very low right now below this year

The US 1st QTR 3.7
2nd QTR 2.4

[yawnmaster]

17. The US numbers are annualized already. by quarter USQ1=0.925 USQ2=0.6

those numbers are less than 1/3 of the German growth.
the German 2.2% (8.8 annualized) does not suck.

[Kurt_and_Hunter]

11. This is not an ANNUALIZED number. (Think 8.8%, not 2.2%)

Almost all news stories about GDP growth in the US used annualized numbers.

If the GDP went up 1% in a quarter it is reported as 4% as an annual rate.

Apparently in Europe they use the raw number. (The more accurate way of expressing it.)

The quarter described in the OP is 2.2% in three months. In US style reporting that is an 8/8% quarter and is really big.

[deaniac21]

12. It's reported as a quarterly numer in the US.

http://www.bea.gov/newsreleases/glance.htm

[yawnmaster]

16. Read the site carefully. The US numbers are reported on an annuallized basis...

Divide the numbers by 4 to compare with the German numbers.

[Commie Pinko Dirtbag]

14. 9.1% actually. (Like compound interest) -nt

[Commie Pinko Dirtbag]

13. If sustained for a year, that would be a 9.1% annual growth.

Impressive. Of course, it's going to be less than that, but still good.