Stubborn German Slowdown Ominous for European Economy

From the WSJ: Stubborn German Slowdown Ominous for European Economy

GDP growth in Germany was a paltry 0.6% last year! Manufacturing contracted 3.6%.

Additionally the gas automotive industry represents about a quarter of Germany’s economy. That’s a big issue considering electric cars don’t need all the gas automotive parts Germany produces and the current leader–Tesla–is a primary competitor to German car companies like BMW and Mercedes.

We are primarily funded by readers. Please subscribe and donate to support us!

“The next decade will be a decade of underperformance, and people may once again start talking about Germany as the sick man of Europe,” said Joerg Kraemer, chief economist at Commerzbank in Frankfurt.

Germany’s weakness is bad news for Europe, and not just because of its size, accounting for about a fifth of the EU’s total gross domestic product.

Germany’s Federal Labor Agency said this month that job vacancies were falling and more firms had reduced working hours to preserve jobs.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.