The German economic situation will deteriorate again? Pessimistic forecasts
The weakening of Germany’s economic situation cannot be excluded – according to the forecasts of the new new German government. This is indicated by the deterioration of the situation in two areas.
The new German government established at the beginning of May does not expect permanent economic recovery in the country yet. The American duties are the biggest worry of our neighbors.
According to the first monthly report of the Ministry of Economy published on Thursday, the economic situation in industry and in the service sector again deteriorated again.
The situation of Germany will deteriorate?
– In this situation, the weakening of the economic situation may not be ruled out later in the year – it was written in a report, the content of which is given by DW.Com.
The website reminds that the German economy has started this year with a slight growth. Gross domestic product (GDP) increased by 0.2 percent from January to March. compared to the previous quarter. Thus, the recession was avoided.
The increase could be supported by accelerated orders caused by the announcement of US duties increases. – Propering indicators, however, indicate the re -weakening of the global economic situation and foreign demand – written in the report.
– Therefore, in the coming months, the weakening of the German foreign trade turnover should be re -weakened – Added.
For the same reason, in the next year there is also a slowdown in industrial situation.
Dw.com points out that a positive impulse can be expected from consumers. The German government is hoping that the improvement of customer moods in combination with growing real income will shoot private consumption in the next year.
Considering the persistent high uncertainty caused by the US customs policy, however, there is no clear improvement in the situation on the labor market.
Despite the customs dispute, the mood in the boards of German enterprises improved in the previous month. The IFO economic index increased in April to 86.9 points from 86.7 points in March. Economists indicate that these data give hope that the German economy will revive during this year despite the higher American duties.
