German industry calls for stimulus as economy shrinks

Germanys powerful industry federation BDI Wednesday called on the German government to open up the money taps after data showed the national economy contracted 0.1 percent in the second quarter.

The federal statistical office said weakening trade had contracted the economy between April and June in comparison with the previous quarter, down from growth of 0.4 percent in the first quarter.

An estimate by Eurostat also showed industrial production down 2.6 percent in June in the eurozone compared to last year.

While the last quarters contraction does not yet meet the criteria for a recession, BDI said the government should act now before the country enters a downward spiral.

“There are gloomy months ahead of us that threaten to become years — unless the government takes strong countermeasures,” BDIs Secretary-General Joachim Lang said.

Lang pointed out tRead More – Source

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