Germany the 'sick man of Europe' after all as illness cripples economy - Financial Post | Canada News Media
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Germany the 'sick man of Europe' after all as illness cripples economy – Financial Post

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8 months ago

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German officials insist their economy doesn’t merit the “sick man of Europe” label, but a new study suggests illness is really playing a part in its poor performance.

Gross domestic product would have risen 0.5 per cent last year if it hadn’t been for work absences due to poor health — a tally that surpassed pandemic totals to reach a record in 2023, according to analysis by VFA, Germany’s association of research-based pharmaceutical companies.

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Some €26 billion (US$28.2 billion) in real income was lost due to illnesses among employees — equivalent to about 0.8 percentage point of total output, economists Claus Michelsen and Simon Junker wrote in a report released on Jan. 26. High levels of absences in November and December point to another hit in the current quarter too.

The German economy shrank 0.3 per cent in 2023, its worst performance in two decades barring the financial crisis year of 2009, and 2020, when the pandemic hit. Its underperformance compared to regional peers was so pronounced that it evoked the “sick man of Europe” label previously used to describe it a quarter century ago.

Bundesbank president Joachim Nagel has rejected the comparison, and last week, Finance Minister Christian Lindner insisted the country was more like a tired man just needing coffee.

“In 2023, Germany was the ‘sick man’ in the truest sense of the word — its economic performance was significantly more affected by the wave of illness than in other countries,” Michelsen and Junker wrote. “What’s still true though is that Germany’s economy faces significant structural problems and is confronted with major challenges in international competition.”

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S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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September 13, 2024

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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2 days ago

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September 13, 2024

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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3 days ago

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September 12, 2024

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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