The German economy recorded a decline in activity in the fourth quarter of 2012 as its industry reduced production to align with weaker demand in Europe, the German Ministry of Economy announced on Friday.
The largest European economy has been pressured by uncertainties in the European environment caused by a multi-year debt crisis in the eurozone, and negative effects were also triggered by the fiscal crisis in the U.S., among other things, according to the review of the state of the German economy published in January 2013 on the ministry’s official website.
“All indicators suggest that there was a significant decline in activity in the German economy in the fourth quarter of 2012,” the ministry stated.
However, the monthly review of the Ministry of Economy contains a glimmer of hope that the situation in the German economy could improve this year.
“The fundamental strength of the German economy, as well as positive signals from the global economy, suggest an assessment that the economy will significantly recover during this year,” the ministry believes.
