Germany is at risk of a recession amid escalating protectionism that is weighing on the export giant, according to Sentix.
Its index of how investors view the economy fell to the lowest since 2010, indicating a recession is “therefore just around the corner.” The gauge for the euro area also declined.
Last week, Germany’s central bank slashed its forecast for growth this year to just 0.6% and figures showed industrial production plunging the most in almost four years.
Sentix pins much of the drop in confidence on the U.S.-China trade war and the threat of more tariffs on Europe.
“The hope that the phase of economic weakness around the turn of the year 2018/2019 could be quickly brought to an end seems to have vanished,” it said. “Although the cause of the problem is easy to identify, it is not necessarily easy to solve in view of the increasingly tough political fronts.” DM
In other news...
The South African economy is choking harder than the Proteas. Although to be choking you have to actually be eating and the Proteas seem to be on some sort of juice cleanse-like fast…*
Back to the economy: In the first quarter the GDP dive-bombed by a whopping 3.2%. The sense of futility can paralyse us into inaction and moaning. But it’s times like these that call for effort and action, no matter how small. Yes, South Africa is hurting. Yes the ravaged economy is evident everywhere you look. But you can make a difference, in your own personal way and by supporting independent media like Daily Maverick. We’ve pledged to continue the fight through producing incisive and impactful investigations and analysis, the same way we have done every day for the last decade.
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*Proteas, you know we love you. We’d just love you more if you won occasionally...
"The real problem of humanity is the following: we have paleolithic emotions; medieval institutions; and god-like technology" ~ Edward Wilson