Unexpected Drop of German ZEW Consumer Sentiment Index. GDP of the 3rd Quarter Might Experience Zero Growth

2012-11-15

The German Consumer Sentiment Index in November dropped unexpectedly, signifying that the debt crisis has spreaded from neighbor countries to the center of Euro zone. This might endanger the country's economic outlook in the second half year. According to Bloomberg's coverage, German's export, purchase oders and capacity drops substantially over expectation, with almost no growth. Under this situation,  German's economy in the 3rd quarter may come close to zero growth, and the 4th auarter may keep worsening, even showing zero growth. German's economic growth of the 2nd quarter has slowed down from the previous 0.5% to 0.3%. According to Bloomberg's investigation, economists predict German's GDP growth in the 3rd quarter will further slow down to 0.1%.