Europe hurt by German output drop
The Eurozone economy shrank much more than expected for the first quarter. And Europe's largest economy suffered an even bigger drop due largely to tumbling exports. Stephen Beard reports.
The German flag flies at a harbor in Hamburg, Germany. (Stuart Franklin/Getty Images)
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BILL RADKE: Europe is sliding deeper into recession. Numbers out this morning show a bigger than expected decline in the Eurozone for the first quarter. And, an even bigger one for the continent's largest economy. Here's Stephen Beard.
STEPHEN BEARD: Germany's GDP fell by 3.8 percent in the first three months of the year. The country's largest quarterly contraction since the Second World War. Tumbling exports are largely to blame.
Like Japan, Germany has been hit very hard by the collapse in world trade. And the rest of the Europe is feeling the effect. The Eurozone economy declined by a whopping 2.5 percent in the first quarter. Graham Mather is with the European Policy Forum.
Graham Mather:It just seems to be bad luck that Europe has become such a world-trading export-focused economy led by Germany that when there's a worldwide problem, Europe really suffers.
The International Monetary Fund reckons that Europe will fare much worse than the United States this year. Graham Mather says many European politicians are miffed by this, since they blame the U.S. for causing the crisis.
In London, this is Stephen Beard for Marketplace.
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