Thursday, October 9, 2014

Autumn Report: economy weakens further in Germany – T-Online

Autumn Report: economy weakens further in Germany – T-Online

The German economy is weakening more and more: now the leading economic research institutes have revised their growth forecasts sharply downwards. The economy had cooled considerably, the demand from home and abroad is currently weak, according to their fall. In the third quarter, the economy has even stagnated. The causes of the economists call the international crises, the weakness in the domestic and the sanctions against Russia.

The research institutes forecast for this year, only 1.3 percent more economic output. In the coming year, the gross domestic product is expected to rise by 1.2 percent. Six months ago, the experts had predicted 1.9 percent growth for 2015, 2014 and two percent. The researchers recommend that the Federal government to strengthen the forces of growth: with a reduction in the tax burden and higher investments

“Clear signs of weakness”

The world economy is growing only with an unexpectedly steady pace. . In particular, the euro zone was in a slump. The international crises in Syria and Iraq, but also the still smoldering Russian-Ukrainian conflict gloomier one addition. “But domestic demand is showing clear signs of weakness,”

explained the expert.

The consumer climate had deteriorated recently. Also, business investment declined in the second quarter. Due to the stagnation in the second half of the capacity of the German economy is expected to sink. This also leaves its mark on the labor market: Employment construction slowing himself

After the drop in orders in the industry, the export sector gets the global crises clearly felt.. So had shortly before the publication of the autumn report the Federal Statistical Office reported that German exports have plummeted so sharply in August as has been five and a half years, not more . As it was said, exports fell in August by 5.8 percent the previous month. Imports also fell unexpectedly by 1.3 percent.

“sand in the gears of the world economy”

“The coincidence of the same multiple hotspots is sand in the gears of a principally polarized growth global economy,” said Anton F. Börner, president of the Foreign Trade Association BGA. “This leads to a sustained uncertainty in the markets and consequently also to a lack of necessary investments.”

The threats to the economy in the euro area are also in the opinion of the European Central Bank (ECB) continues immensely. “The risks to the economic outlook in the euro area are still tilted to the downside”, according to the latest Monthly Bulletin of the ECB.


No comments:

Post a Comment