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Germany narrowly avoids recession after stagnating in last quarter – business live

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Rolling coverage of the latest economic and financial news, including the latest German GDP reportNEWSFLASH: Germany misses recession by a whisker
Economy stalled in October-December, after shrinking over the summer
Trade woes pull German economy backComing up: Eurozone growth figures at 10am 7.52am GMT Carsten Brzeski of ING says Germany’s economic “black eye” has taken a blow, after its economy failed to grow in the last quarter.The German economy escaped a technical recession with the smallest margin possible. The black eye just got blacker. Still, the upside from today’s data is that it can hardly get worse. The weak performance of the German economy in the second half of the year is the result of (too many) one-offs, surfacing structural weaknesses and external uncertainties. Just think of cars, low water levels in main rivers, the trade conflict between the US and China, Brexit or the lack of investment in digital and traditional infrastructure, delays of railways and airlines as well as hardly any significant new structural reforms in the last ten years.What a list! However, it is still not necessarily the end of a long positive cycle. 7.44am GMT Germany used to be the powerhouse of the eurozone economy, but a cocktail of blows from home and abroad have left it nursing a bad hangover.1) The global slowdown. The world economy has come off the boil in recent months, partly due to Donald Trump’s trade war. That means less investment, so lower demand for machinery produced by Germany’s industrial heartland. China, in particular, has been cutting back on imports as its economy slows. Continue reading…



Source link : https://www.theguardian.com/business/live/2019/feb/14/germany-economy-recession-gdp-eurozone-growt-trade-talks-business-live

Author : Graeme Wearden

Publish date : 2019-02-14 07:52:34

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