Germany falls into recession, China output growth drops

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LONDON/TOKYO, Nov 13 (Reuters): Germany has fallen into recession and China industry output growth dropped to its lowest in seven years, data showed Thursday, reinforcing fears the financial crisis is plunging the world into a painful downturn.
The impact of the worst financial conditions in 80 years was felt sharply in Germany, Europe's largest economy, where the economy contracted by 0.5 per cent in the third quarter, putting it in recession for the first time in five years.
The decline was accentuated by a negative contribution from foreign trade as exports weakened.
"The headwinds of the financial crisis and the global economic slowdown are blowing right in the face of the German economy," said Carsten Brzeski of ING Financial Markets.
China, which has unveiled a four-trillion-yuan ($586 billion) stimulus package, also felt the ill effects of a global slowdown, with annual industrial output growth slumping to 8.2 per cent in October, its weakest showing since October 2001.
Stock markets tumbled in Asia and Europe, spooked by worries that massive capital injections and emergency regulatory measures have failed to halt damage to the real economy.
Following a Wall Street sell-off that sent the Nasdaq to a five-year low, Tokyo shares slid 5.3 per cent and the price of oil fell to a 22-month low at $55 a barrel on worries that a recession will curb demand.