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IMF Halves Germany 2013 Growth Estimate; Still Too Optimistic With most of Europe in a nasty recession, and significant parts of it (Spain, Greece, Cyprus, Italy) in an outright economic depression, I wonder why it took so long for the IMF to Reduce Germany GDP Forecast . Germany’s 2013 growth prospects have been cut in half by the International Monetary Fund, as it warned that the outlook for Europe’s strongest economy could worsen if a eurozone recovery fails to materialise. The IMF said falling business investment and the eurozone’s ongoing recession, which have hampered German growth, meant the economy would grow by just 0.3pc this year, compared with an April estimate of 0.6pc
4 Synopsis Last month I stated " Manufacturing employment has grown for 43 months. I expect that trend to break next month. Production was up but inventories were way lower.
In response to Sweden Housing Crash Coming Up; Average Swede to Repay Mortgage in 140 Years; Swedish Central Bank Ponders New Rules I received an interesting email from reader Antti who writes …. Hi Mish, An interesting factor, which is potentially going to amplify the pain (a lot) in Sweden is how their law is written regarding apartment buildings and ownership
More: Lowest Core PCE in History; "Flation" Perspective
More: You Are About to Become Obsolete; Perhaps You Already Are (But You Don’t Realize It Yet)
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I just finished reading The Smith/Klein/Kalecki Theory of Austerity by Paul Krugman and I believe it is the most disingenuous piece he has ever written. Krugman comes out blazing with the statement ” Noah Smith recently offered an interesting take on the real reasons austerity garners so much support from elites, no matter how badly it fails in practice.
The exchange got quite interesting when Merkel Allies Bashed Hollande Over Needed Reforms Leading members of Angela Merkel’s ruling Christian Democratic Union in Germany have fiercely criticised François Hollande, accusing the French president of “shaking the foundations of the European Unionâ€, only hours before the two leaders met in Paris in a bid to repair their troubled relations. Deep German concern about the French government’s resistance to economic reform and hostility to EU pressure emerged after Mr Hollande said it was not for the European Commission “to dictate†reforms to Paris.“There is no need for European recommendations; what’s needed is obvious. It’s not for the commission to dictate what we have to do,†Mr Hollande said in response to the commission, whose call was part of its annual assessment of budget plans for all 27 EU members
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