it currently Reads the news on the economic situation in Germany, you might get the feeling that the country will steer straight to a Crash. The renowned Ifo Index fell in January to the lowest level in almost three years, it was the fifth decline in a row. Ifo President Clemens Fuest commented: “The German economy is in a downturn.”
Also the economy Minister, Peter Altmaier (CDU) switched into the crisis mode, after a series of economic research institutes had corrected their forecasts downward. It would “make sense to set growth incentives. This also includes tax relief for companies.” The economy is in need of a tail wind, in order to create “jobs and growth”.
But, now, the Economists, who keep all the pessimistic mood covered for comment. “We need to get away from alarmism. The increasingly expressed concern with the upswing in Germany is covered,” said Marcel Fratzscher, President of the German economic Institute (DIW). The German economy is going well. Employment will continue to rise.” Also in the next year will be based, particularly in the domestic market the German economy.
Similar to the prize winner Robert Shiller said economic Nobel in a recent Interview with the MIRROR. “Towards the end of last year, the people seemed to suddenly start to talk in more pessimistic tones, before the situation calmed somewhat. I tend to see this as an epidemic: Negative thoughts are contagious. The causes I see as a puzzle, and the different thickness of flu outbreaks is difficult to explain.” He had the feeling that the crisis would be talked about.
The last recession was in Germany for nine years, in the United States, there are even eleven. Many observers feel that the downturn should come in time. But professionals like Carsten Brzeski, chief economist for Germany and Austria, ING, saying: “There is no economic law that economic expansions die of old age.” Reminder: The Australian economy has been growing for 27 years without interruption.
It is not a full year, as fueled self-economy Minister Altmaier, the hope that Germany could leave the constant up and down of economic cycles. The strong economic growth continued, and Altmaier said at the end of March the MIRROR, he think it is possible, “is that we can continue on this growth path for at least 15 to 20 years”.
in fact, the German economy when growth in the past, the ninth year in a row, so strong. The gross domestic product (GDP) grew last year by 1.5 percent, respectively, compared to 2.2 percent in the previous two years.
cause for the slowdown in growth, especially the problems in the introduction of the new emission and fuel – consumption standards WLTP, the Auto manufacturers had to cut so at times your production. Economists at DekaBank stated: “Germany has no economic problem, Germany has a car problem.”
so, It could be that many prospective customers will do their buying in the next few months. The current slowdown in the economy would then only temporarily. Open, however, whether the other factors of uncertainty are overcome for the economy, until then, it’s about the impact of the worldwide increase in protectionism and the slowing momentum of the economy in China. You have to put the German economy in the past few months.
All of the negative sentiment leaves room for positive Surprises. It would, for example, between the United States and China, a relaxation in the trade of conflict, or a solution in the Brexit issue, it would be reflected immediately positive effect on the economy. “The new economy could be a year better than it is now expect a lot of naysayers,” says ING economist Brzeski.