German Economy Stalls; Spanish Output Deteriorates

Arthi Gupta
11 Jan, 2012
New York City

German economic growth stalled and Spanish output deteriorated for the third month in a row in November. The Italian budget deficit narrowed in the third quarter and Portuguese inflation eased in December.

[R]1:30 PM Frankfurt – German economic growth stalled and Spanish output deteriorated for the third month in a row in November. The Italian budget deficit narrowed in the third quarter and Portuguese inflation eased in December.[/R]

German GDP Contracts

German gross domestic product, price and calendar adjusted, rose 3% annually in 2011 compared to 3.6% in 2010, the preliminary data from the Federal Statistics Office showed.

In 2011, the country''s public deficit was €26.7 billion or 1% of GDP.

The price adjusted gross domestic product rose 3% in 2011, following growth of 3.7% in 2010 and a 5.1% contraction in 2009, the German federal statistics office Destatis said on Wednesday.

Germany''s economy likely contracted by around 0.25% in the fourth quarter of last year, the government''s statistics office said.

Spanish Output Deteriorates

Spain''s industrial production dropped a working-day adjusted 7% from a year ago in November, after falling 4.2% in October, revised from 4%., data released by the statistics office INE showed. The latest decline was the worse since October 2009, when production slumped 9.1%.

Italy Budget Deficit Narrows

Italy''s net borrowing fell to 2.7% of gross domestic product in the third quarter from 3.5% a year earlier, data released by statistics office Istat showed.

In the first nine months of the year, total public spending decreased 0.3 percentage points from last year to 4.3% of GDP.

Portuguese Inflation Eases

Portugal''s consumer price inflation eased to 3.62% in December from 3.95% in November, data released by Statistics Portugal showed today.

On a monthly basis, consumer prices remained flat in December, after edging down 0.1% in November.

Greek Inflation Slows

Greece''s consumer price inflation slowed to 2.4% in December from 2.9% in November, data released by the Hellenic Statistics Authority showed.

From a month ago, consumer prices decreased 0.1% in December, following the 0.2% gain in November.