Germany could suffer an economic recession
The main European economy suffered a reduction in its commercial activity during the last quarter of 2018, which has ignited the alarms of investors
At the end of 2018, Germany experienced a decline in imports and exports. The trend started a few months ago, but at the beginning of 2019, investors fear that the situation will worsen and submerge the country in an economic recession.
Indeed, exports from the European country fell by 0.4% last November. During the same period, imports fell 1.6%. Additionally, GDP fell 0.2% between July and September.
The German economic scenario generates fear in all the actors. To worsen the situation, according to data published by the Federal Statistical Office of Germany (Destatis), “German exports in November amounted to 116,300 million euros, a figure that represents a decrease of 0.4% compared to October, although they remained stable in year-on-year terms.“
Although the dynamics of German exports and imports showed slightly positive balances for November 2018, both sectors are below the estimates and, even, of the levels reached for 2017.
This Tuesday the negative commercial data of Germany were published confirming that the national industrial production fell 1.9% in November. Carsten Brzeski, chief economist of ING Germany, said: “(…) even if there is a technical recession this should not leave sequels in the labor market, although it should be the definitive touch of attention to accelerate investments and structural reforms.”
M.Pino
Source: El Economista
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