Published On: Wed, Aug 28th, 2019

Germany recession PANIC: Official figures show Berlin suffered second quarter slump | World | News

Exports fell by 1.3 percent in the second quarter, compared to the 0.8 slump from the previous year for Germany. Investment has increased just 0.6 percent and Gross Domestic Product (GDP) fell by 0.1 percent, meaning hit after hit has seen warnings about the collapsing economy in Germany become a grim and frightening reality. The German economy recorded its sharpest decline in six years, the Federal Statistical Office revealed.

Investments have been slowly stagnating since disputes between the US and China which have particularly affected Germany via the contribution of industry to GDP that has declined correspondingly strongly.

Further figures from the Federal Statistical Office reveal the current desolate state of the German economy, with corporate earnings dropping substantially in the second quarter.

But despite this, employee incomes increased strongly.

As a result, national news states wage settlements from the previous boom are being heavily relied on in Berlin.

Europe’s largest economy is on the brink of recession as car manufacturing growth plummets.

Germany’s central bank, the Bundesbank, said that lower consumer spending and softer overseas demand has caused the economic downturn.

Despite the news, Deutsche Bank, which closed assets months ago, claims the crumbling economy is part of a “cycle”.

Stefan Schneider, Chief Economist for Germany at Deutsche Bank, does not think much of that. “The downturn is part of the cycle like the amen is part of the church.

READ NOW: Brexit just got real: Boris’ Brexit proroguing plan leaves EU in fear

Germany is on high alert for a recession if Britain leaves the EU without a deal at the end of October.

German politicians are under growing pressure from economists and businesses to give in to British demands for a Brexit compromise before the October 31 deadline.

Thomas Kielinger, a German reporter from Die Welt, told the BBC that the German parliament could be key in overturning the EU’s hardline stance.

Speaking on BBC Dateline, the German expert said Mrs Merkel is under pressure from her country’s businesses that are “frightened” about a recession.

This has prompted speculation that Germany could be the first to turn on the EU’s hardline stance on refusing to compromise with Britain.

Mr Johnson has pledged that the UK will leave the EU at the end of October “do or die” – with or without a deal.

Additional reporting by Monika Palenberg.

Source link

Most Popular News