French and German economies contract in 2012

The economies of Germany and France, considered to be the strongest in the Eurozone, contracted in the last quarter of 2012.

According to official data, the German economy shrank 0.6% in terms of gross domestic product in the last quarter as exports declined, which represents the worst performance since the first quarter of 2009.

The outlook for economic growth in Germany for 2013 was adjusted by 1% because it was initially forecast at 0.4%, which in 2014 was predicted to rise to 1.5%.

The crisis within the eurozone and the weakness of the economy globally were the main causes of the setback of the German economy which, nevertheless, still managed to grow 0.7% in 2012.

In addition, experts in statistics are optimistic regarding the German economy.

On the other hand, the French economy fell 0.3% and some analysts have already predicted France heading into a recession.

Nevertheless, the Central Bank of France recently anticipated that their economy would grow in the first quarter of 2013.

Some economists and official forecasters from the European Central Bank expect the eurozone to recover throughout the present year.