Germany is officially in recession and, according to a new forecast by
the Organization for Economic Cooperation and Development, the rest of
the world's developed economies are in a downturn as well, with further
contraction coming in 2009.
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GDP in Germany, Europe's largest economy, contracted 0.5% in the third quarter after a 0.4% decline in the second quarter, marking the country's worst recession in 12 years. The Paris-based OECD on Thursday projected that GDP was likely to fall by 0.3% next for its 30 member countries. It expects contractions of 0.9% in the U.S., 0.5% in Europe and 0.1% in Japan.
Not surprisingly, stocks continued to fall across Europe and Asia. The Dow Jones Stoxx 50 was down 0.6% to 203.97 in midafternoon trade. -
Barbara Rudolph
