12 COMMENTS

  1. A short-term bump in spending, as Mrs Merkel argues, would rub up against bottlenecks in areas like construction. Nor would it help remove the pall of uncertainty facing German firms. So some analysts want a credible, possibly cross-party, commitment to establish a fund that would disburse several hundred billion euros over the next decade. Possible targets include transport infrastructure, broadband networks, house building and help for local governments struggling under debt loads. Other ideas include cutting taxes on Germany’s army of low-paid workers or its corporations, or introducing incentives for climate-friendly policies like retrofitting buildings and clean fuel.

  2. After weeks of dismal survey and industrial-output numbers, it was little surprise to learn on August 14th that Germany’s gdp had contracted by 0.1% in the second quarter of 2019 compared with the previous three months. The economy has been essentially flat over the past year. Household spending, bolstered by wage growth in a tight labour market, has held up but the slump in manufacturing, which represents over one-fifth of output, is deepening. Companies are cutting work hours and issuing profit warnings. Many analysts think Germany is heading for outright recession.

  3. >After weeks of dismal survey and industrial-output numbers, it was little surprise to learn on August 14th that Germany’s gdp had contracted by 0.1% in the second quarter of 2019 compared with the previous three months. The economy has been essentially flat over the past year.

    >A year-on-year 8% slump in exports appears to be the main driver of the slowdown. The uncertainty spawned by the us-China trade spat and the prospect of a no-deal Brexit are largely out of the hands of Angela Merkel’s government. Demand for German products in China is slowing. Germany will be badly hurt if Donald Trump follows through on his threat to whack tariffs on car imports later this year.

    Note that the U.S.-China trade war is likely very temporary, speculations surfascing regarding Brexit are mostly opposing the concept of UK leaving EU, which indicates that the trend of Germany’s economy shrinking being highly speculative. More cooperation and less fearmongering will probably be the remedy.

  4. A 0.1% decrease compared to the previous quarter still isn’t saying much. That being said, a number of people are saying that we’re long overdue for a global financial crisis. I also wouldn’t be surprised if this was the absolute very beginning.

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