Friday, January 09, 2009

..Exponentially worse..

"In Germany, Europe's largest economy and a manufacturing powerhouse,industrial output slumped 10 percent on the year, its fastest pace of decline since 1993. In France, it fell a record 9 percent. And in Spain, by 15.1percent. "
If you are not worried yet, you ought to be. The difference is Germany has a current account surplus.
Read the whole article here.


In Actual Fact said...

We've been mocking German economic output for the past few years as our GDP (measured in USD) pulled us up the league tables and overtook them per capita. Apart from the odd evening out in Wilmslow and Alderley Edge, I've never really believed this.....Yes, they have Eastern Germany to drag along, but we have Stoke, Hull, Darlington etc.
Dave Cameron gave a speech not too long ago about the benefits of free trade and how Britain, as a trading nation and island was better off for this and I hope he sticks to his word and, if elected, tries to get the EU to remove tariffs.
All well and good, and as you say, Germany's industrial output slumped 10% on year - which has to hurt - and yet they're still a nett exporter and could take another 10% hit and carry on being so. Bad news for you personally if you work for Bosch and get laid off, but a whole world/just across the North Sea, lirealists, away from the UK.....

kinglear said...

Ah, but the UK GDP has got nothing to do with making things - ours was fantasy hairdresssing and celebrity burger flipping. The Germans still make wonderfully efficient stuff which will be wanted as long as there is any sort of human activity on this planet.
I doubt there will be much demand for personal dog trainers

In Actual Fact said...

Sorry, I (once more) didn't express myself very well there - that's exactly what I meant - they make things, know they can't compete with the Far East on price, so go for high-tech, high quality goods - and spend lots on R&D to stay on top: e.g. the German Land of ca. 10mn people I used to live in spent 4% of GDP on R&D. It's less than half that here. It was quite scary to sit through presentations there and see them compare their small Land not to something equalish in size like the West Midlands, but to the whole UK. That said, they do have crap haircuts over there, so maybe a few more fantasy hairdressers and less machine tools wouldn't be all bad.