Friday, September 07, 2012

Blog #2 German Growth

As third quarter numbers are coming in Germany is showing slight growth in industrial production and internal investment. After an overall 3% decrease in the second quarter a steady growth of 1.5% has been reported. Analysts at the Bundesbank has predicted that the growth will stabilize in the fourth quarter and show no more increase.

Despite this growth larger companies like Volkswagen have issued production cut backs, 100,000 cars to be specific. The Head of Economic Research at Commerzbank has issued a statement complimentary to the Bundesbank stating that “In the next few months we are expecting a noticeable deterioration in industrial production."

Germany being the most stable economy in the turmoil of the EU is receiving some criticism about it's growth. With cries of austerity coming the German General Assembly, citizens around Europe are condemning Germany for not helping other nations that still have potential to rebound, like Spain.

I think that Germany should continue with the austerity policy and focus on restrengthening it's economy. With countries in the EU falling like dominoes into financial crisis in time a pillar will be need with which to rebuild the European economy. If Germany develops a strong model they can lead the rebuilding process should the EU fall.

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