German Economy Seeing Worst Year Since 2013

German Economy Seeing Worst Year Since 2013

Germany’s economic performance in Y 2018 was its weakest in 5 years, it was reported Tuesday.

The German economy grew 1.5% last year, a sharp decliner from the 2.2% expansion in Y 2017, and the slowest annual rate since the European debt crisis in Y 2013.

Experts say the slowdown was due to a number of factors, including trade tensions, turmoil in emerging markets, uncertainty over BREXIT, and a sharp economic decline in China.

Growth also took a hit due to a decline in exports.

Figures released last week also showed German industrial production declined 1.9% M-M in November, which was significantly below a consensus for growth of 0.3%.

German growth was weakest in 2-H of last year, with Q-3 especially poor as the economy contracted 0.2%, according to the data.

The outlook for the future is not particularly Rosy, with Holger Schmieding, chief economist at Berenberg, saying “For the next few months, we have to brace ourselves for a very grey Winter.”

Troubles in Germany’s economy, Europe’s largest, are expected to deepen concerns about slower global growth this year.

Germany’s economy, Europe’s largest, is shrinking on increasing worries about the effect of multiple issues, like Britain’s decision to leave the EU and new tariffs from The Trump Administration.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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