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German Economy Contracts

The document discusses the state of Germany's economy. It notes that Germany's GDP growth resulted mainly from foreign trade and imports. The German unemployment rate could rise to 4.4 million in 2009 as economic growth is not expected until the second half of 2010 according to the OECD. The German government passed a second stimulus package worth 158 billion euros focused on infrastructure investment, health insurance contribution reductions, and industry subsidies to boost the economy and reduce unemployment. However, some economists say the government measures may have limited impact due to rising debt levels and more needs to be done to restart economic growth.

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59 views2 pages

German Economy Contracts

The document discusses the state of Germany's economy. It notes that Germany's GDP growth resulted mainly from foreign trade and imports. The German unemployment rate could rise to 4.4 million in 2009 as economic growth is not expected until the second half of 2010 according to the OECD. The German government passed a second stimulus package worth 158 billion euros focused on infrastructure investment, health insurance contribution reductions, and industry subsidies to boost the economy and reduce unemployment. However, some economists say the government measures may have limited impact due to rising debt levels and more needs to be done to restart economic growth.

Uploaded by

zfmwj2db47
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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–444– M11/3/ECONO/SP2/ENG/TZ0/XX

2.# Study&the&extract&below&and&answer&the&questions&that&follow.

concerns4about4 .444

# 4
gross4domestic4product4(GDP)4resulted4from4foreign4trade,4with4a4strong4increase4in4imports4

fall4since4World4War4II.

# German4unemployment4could4increase4by4around4one4million4in420094and4reach44.44million4
4
but4economic4growth4will4not4return4until4the4second4half4of42010,4according4to4the4OECD*.

#
4

in4Germany.

# The4 package4 of4 measures4 to4 stimulate4 the4 economy4 may4 be4 a4 step4 in4 the4 right4 direction4 in4
4

German4government,4which4recently4passed4a4second4package4of4emergency4spending4worth44

# Major4 measures4 planned4 for4 2009–20104 include4 additional4 infrastructure4 investment44


4
of4 15.84 billion4 euros,4 a4 reduction4 in4 health4 insurance4 contributions4 and4 subsidies4 for44
individual4industries.44

*4
4
4

(This&question&continues&on&the&following&page)

221115113
–454– M11/3/ECONO/SP2/ENG/TZ0/XX

(Question&2&continued)

# However,4some4economists4say4the4government4has4been4too4hesitant4in4its4efforts4to4stimulate4
the4 economy.4 4 The4 impact4 of4 some4 measures4 may4 be4 limited4 by4 the4 rising4 4 ratio.44

to4start4growing.4

[Source:4adapted4from4http://www.dw1world.de/dw/article/0,,3788397,00.html,4134November42008]44

4 4 (i)4 (paragraph& ) [2&marks]

4 4 (ii)4 savings4(paragraph& ). [2&marks]

4 (b)4
in4relation4to4the4business4cycle. [4&marks]

4 (c)4 one
Germany4in42009. [4&marks]

4
evaluate4 t
designed4to4boost4the4economy4and4reduce4unemployment. [8&marks]

221115113 Turn#over#

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