Slumping exports sent Germany's economy into reverse in the second quarter,...
BERLIN - Slumping exports sent Germany’s economy into reverse in the second quarter, with prospects of an early recovery slim as its manufacturers struggle at the sharp end of a global slowdown amplified by tariff conflicts and fallout from Brexit.
The global slowdown, reinforced by Chinese industrial output expanding at its lowest rates in 17 years in July, has broadly impacted the euro zone, where corresponding data showed second quarter growth halved to 0.2%. “Trade conflicts, global uncertainty and the struggling automotive sector have finally brought ... down on its knee.”
“We are in a phase of economic weakness but not yet in recession. We can avoid that if we take the right measures,” Altmaier told mass-market daily Bild. “The bottom line is that the German economy is teetering on the edge of recession,” Andrew Kenningham from Capital Economics said, noting that exporters were facing an even bigger potential hit if a no-deal Brexit materialised.The statistics office said that net trade slowed second quarter economic activity as exports recorded a stronger quarter-on-quarter decrease than imports.
That has become an important growth driver for Germany in recent years as consumers benefit from record-high employment, inflation-busting pay hikes and low borrowing costs.“For a year now, the German economy has been only crawling forward,” Rees said, with the many uncertainties facing exporters presaging more pain over the rest of the year.
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