15 May 2003, 10:11  German economy shrank 0.2% in Q1

BERLIN, May 15 - Germany's gross domestic product shrank 0.2 percent in the first quarter of 2003 from the final quarter of 2002, according to official data released on Thursday that indicate Europe's largest economy is near recession. The fall, adjusted for seasonal factors and differences in the number of working days, contrasts with a forecast of a 0.1 percent increase in a poll of 19 economists, the data from the Federal Statistics Office showed.
"The fall in economic output in the first quarter of 2003 compared with the previous quarter results mainly from an increase in imports that was significantly above the increase in exports ...," the Office said in a statement. The figure confirmed data leaked to on Wednesday night. The economy contracted slightly in the final quarter of last year, with the Statistics Office reporting growth of "minus zero" for the period. The contraction in the first quarter means the country is close to a technical recession, defined as two successive quarters of contraction.
Year-on-year, first-quarter GDP grew 0.5 percent, the Office said. Adjusted for the number of working days, growth was smaller at 0.2 percent. Economists polled by had predicted a year-on-year rise of 0.6 percent.//

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