Germany on the edge of the abyss of recession

The German economy suffers. The nation’s GDP fell one tenth in the second quarter of the year and thus opens the door to recession after a decade of virtually uninterrupted growth. For its part, the Federal Statistical Office points to the weakness of foreign trade as a trigger for the setback.

With the imminent arrival of Brexit, the commercial war raging in the markets and the car industry touched, data from April to June show that the largest economy in the European Union cannot continue to absorb the charges despite benefiting from the weakness of the euro.

The first reactions did not wait. Economy Minister Peter Altmaier, of the conservative Christian Democratic Union, considered it “a warning signal” but also felt that the recession is avoidable.

The minister said: “We are in a phase of weakening, but not yet in a recession, which we can avoid if we take appropriate measures. Politics and the economy must now act together.”

“The main reason for the current weakness is the fall in foreign demand,” said Altmaier, who noted that the German export-oriented industry is especially exposed to trade disputes.

L. Sáenz

Source: El País