The media is creating a hooha about France, Germany and Japan being out of recession and their economies being “fixed”, despite one quarter of less than 1% growth. I don’t think you can really say that their worst days are over just because economic output was up vs. previous poor quarters but anyway. The media is saying that these countries are happy while the UK and USA are still in recession and Germany, France etc no longer want to help with stimulus because they are “fixed”.
Has anyone considered what these three companies export quite large amounts of and what other countries, especially the UK and USA have been trying to stimulate?
The UK has barely any car industry, and the USA has broken companies like Ford and GM.
A scrappage scheme with a purse of ~£400M would allow approximately £4-5B to be spend on new german cars with an average price of £20-25k. Obviously they would not be the only cars bought, but when you put the worldwide picture into it, I think the amount of increased spending on German goods easily be £5B due to scrappage schemes.
What’s £5B in terms of the German quarterly GDP? 1.0%?