Germany says Europe’s largest economy is in ‘troubled waters’ and cuts its growth forecast
10 months ago

Germany says Europe’s largest economy is in ‘troubled waters’ and cuts its growth forecast

Associated Press  

FRANKFURT, Germany — The German government said Europe’s largest economy was in “troubled waters” and slashed its growth forecast for this year as it struggles with a lack of skilled labor, excessive bureaucracy, high interest rates and lagging investment in new projects — while a relatively modest set of tax breaks for business remains blocked in the legislature. “The economy is in troubled waters.” The loss of Russian gas in Germany led to a spike in energy costs that hammered energy intensive industries and contributed to high consumer inflation that eroded purchasing power and made consumers more reluctant to spend. As wages rise faster than inflation, workers “finally have more money in their wallets in real terms.” Slowing global trade is another factor behind Germany’s troubles, since exports of autos and industrial machinery have been mainstays of the economy. High interest rates from the European Central Bank have slowed construction of new homes and offices; companies complain they can’t get skilled workers; and excessive red tape and lengthy approvals slow the construction of new projects such as renewable energy generation.

Europe Germany Led Waters Troubled Waters  cuts  troubled  forecast  germany  europes  workers  skilled  largest  energy  gas  led  waters  tax  economy  high  growth  inflation

History of this topic

France, Germany face industrial decline
2 weeks, 6 days ago

France, Germany face industrial decline

China Daily  

People walk next to a Trabant, a former GDR-produced car called Trabi, in Berlin, Germany, November 18, 2024. France and Germany have emerged as two of the biggest industrial losers after consultancy S&P Global published its purchasing managers index, or PMI, for November, revealing the state of health of manufacturing across the world. Overall, the PMI for the 20-member eurozone …

France, Germany face industrial decline
2 weeks, 6 days ago

France, Germany face industrial decline

China Daily  

People walk next to a Trabant, a former GDR-produced car called Trabi, in Berlin, Germany, November 18, 2024. France and Germany have emerged as two of the biggest industrial losers after consultancy S&P Global published its purchasing managers index, or PMI, for November, revealing the state of health of manufacturing across the world. Overall, the PMI for the 20-member eurozone …

Germany goes kaput: How Net Zero is killing Europe's most efficient industrial machine
3 weeks, 5 days ago

Germany goes kaput: How Net Zero is killing Europe's most efficient industrial machine

Daily Mail  

Earlier this year, an acquaintance was encouraged to purchase an electric vehicle as his company car. The country’s Luddite attitude to new tech and IT, an obsession with old-style manufacturing and a snail-like adjustment to greener energy have left the Germany in the slow lane. While the world’s eyes were focused on Washington and the US election result on November …

U.S. protectionism could undermine modest growth forecast for eurozone, says EU Commission
1 month, 1 week ago

U.S. protectionism could undermine modest growth forecast for eurozone, says EU Commission

Associated Press  

FRANKFURT, Germany — Europe’s economy has left stagnation behind but is headed for only modest growth in coming months as consumers regain some of the purchasing power they lost to inflation, the European Union’s executive commission said Friday. AP AUDIO: U.S. protectionism could undermine modest growth forecast for eurozone, says EU Commission AP correspondent Charles de Ledesma reports Europe and …

Germany’s economy is in trouble. The government’s collapse and Trump’s return bring more risk
1 month, 2 weeks ago

Germany’s economy is in trouble. The government’s collapse and Trump’s return bring more risk

Associated Press  

WARSAW, Poland — The collapse of Germany’s governing coalition and President-elect Donald Trump’s imminent return to the White House are creating new risks for the European Union’s biggest economy, already in a troubling decline. “At the European level, political instability in Germany is not good news,’' Antonio Villafranca, vice president of the Italian think tank ISPI, said, noting that a …

Goldman Sachs slashes European growth forecasts on Trump win
1 month, 2 weeks ago

Goldman Sachs slashes European growth forecasts on Trump win

CNN  

London CNN — President-elect Donald Trump’s proposed protectionist policies, including hefty tariffs, will hurt Europe’s economic standing — leaving crisis-hit Germany particularly vulnerable, Goldman Sachs predicts. Following Trump’s re-election, the investment bank cut its growth forecasts for the region, predicting fresh trade tensions with the United States, pressure on Europe to increase defense spending and a hit to business confidence …

Germany's economy isn't growing. But its quarrelsome government can't agree on a way forward
1 month, 3 weeks ago

Germany's economy isn't growing. But its quarrelsome government can't agree on a way forward

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Scholz’s center-left Social Democrats, Vice …

Germany: Europe’s biggest economy is in crisis. Just look at Volkswagen
1 month, 3 weeks ago

Germany: Europe’s biggest economy is in crisis. Just look at Volkswagen

CNN  

London CNN — Germany narrowly escaped a recession in the third quarter, official data showed Wednesday, offering some relief to Europe’s biggest economy as its fortunes falter. “The biggest worry is currently the big pessimism in Germany,” said Marcel Fratzcher, president of the German Institute for Economic Research in Berlin. “We are not experiencing a crisis in the automotive industry, …

How Germany blew up its economy
4 months ago

How Germany blew up its economy

The Telegraph  

This strong backbone of businesses powered export-led growth, enabled in part by a political willingness to trade heavily with China and to rely on cheap Russian gas. “China’s slowdown has led to a decline in demand for the sort of goods Germany is very good at exporting,” says Chris Williamson, chief business economist at S&P Global. “We saw a slump …

Europe’s growth lags US again, as Germany remains the eurozone’s economic problem child
4 months, 3 weeks ago

Europe’s growth lags US again, as Germany remains the eurozone’s economic problem child

Associated Press  

FRANKFURT, Germany — Europe’s economy saw modest growth in the April-June quarter even as the U.S. outperformed expectations, highlighting a persistent transatlantic growth gap. Europe’s growth is also held back by longer-term factors such as higher taxation and burdensome regulation that will mean average annual real GDP growth rates at least one percentage point lower than in the U.S., said …

Gloom settles over Germany’s economy, with businesses downbeat about the coming months
10 months ago

Gloom settles over Germany’s economy, with businesses downbeat about the coming months

Associated Press  

FRANKFURT, Germany — Germany’s businesses remain mired in pessimism, a key survey showed Friday, as Europe’s largest economy struggles with shortages of skilled labor, slower global trade, high interest rates and political squabbling. The closely watched Ifo institute survey of business sentiment rose only slightly to 85.5 points in February from 85.2 points in January due to “slightly less pessimistic …

German economy limps into 2024 as business sentiment falls
10 months, 4 weeks ago

German economy limps into 2024 as business sentiment falls

Live Mint  

Berlin: German business morale unexpectedly worsened in January, declining for the second month in a row as Europe's largest economy struggles to shake off a recession and short-lived optimism gives way to fears of another weak year. As trade disruptions caused by Houthi attacks on shipping in the Red Sea bring fresh concerns for Germany's export industry, the closely watched …

Europe’s biggest economy shrank last year as Germany struggles with multiple crises
11 months, 1 week ago

Europe’s biggest economy shrank last year as Germany struggles with multiple crises

Associated Press  

FRANKFURT, Germany — Germany’s economy shrank 0.3% last year as Europe’s former powerhouse struggled with more expensive energy, higher interest rates, lack of skilled labor and a homegrown budget crisis. The International Monetary Fund expected Germany to be the worst-performing major developed economy last year, a major turnaround from its place as a model for how to expand when other …

Germany’s economy seen shrinking again in the current quarter as business confidence declines
1 year ago

Germany’s economy seen shrinking again in the current quarter as business confidence declines

Associated Press  

BERLIN — Germany’s economy is likely to shrink again slightly in the current fourth quarter, the country’s central bank said Monday, while a survey showed business confidence retreating unexpectedly. The Bundesbank said in its monthly report that “real gross domestic product in Germany is likely to decline again slightly in the fourth quarter of 2023” as a result of weak …

The worst-performing major economy also faces a budget crisis. Germany’s leader vows fixes, but how?
1 year ago

The worst-performing major economy also faces a budget crisis. Germany’s leader vows fixes, but how?

Associated Press  

FRANKFURT, Germany — German Chancellor Olaf Scholz vowed Tuesday that his government will work “as fast as possible” to solve a budget crisis, but he offered few details on how he would achieve his goals of promoting clean energy and modernizing the struggling economy after a court decision struck down billions in planned spending. Scholz and his quarrelsome governing coalition …

Germany, now the world’s worst-performing major economy, grapples with a budget crisis
1 year ago

Germany, now the world’s worst-performing major economy, grapples with a budget crisis

LA Times  

German Chancellor Olaf Scholz delivers a speech on the government’s budget crisis at the Parliament in Berlin. Chancellor Olaf Scholz vowed recently that his government would work “as fast as possible” to lay out how to solve Germany’s budget crisis, but he offered few details on how he would achieve his goals of promoting clean energy after a court decision …

Germany’s leader vows to fix a spending crisis that’s worsening gloom in the struggling economy
1 year ago

Germany’s leader vows to fix a spending crisis that’s worsening gloom in the struggling economy

Associated Press  

FRANKFURT, Germany — German Chancellor Olaf Scholz on Friday promised quick action to fix a budget crisis after a court decision blew a large hole in the almost-finished plan for next year and threatened to disrupt spending on efforts to fight climate change and cushion the impact of high energy prices caused by Russia’s invasion of Ukraine. “Those are “justifiable …

Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast
1 year, 1 month ago

Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast

Associated Press  

FRANKFURT, Germany — The European Union’s executive commission lowered growth its expectations for this year and next, saying the economy “has lost momentum” as inflation discourages consumers and higher interest rates deter borrowing for purchases and investment. it could create spillovers on energy prices.” While growth remains anemic, unemployment remains near record lows and growth should improve as inflation falls …

Europe’s central bank halts rate hikes as war in the Middle East casts a shadow over the economy
1 year, 1 month ago

Europe’s central bank halts rate hikes as war in the Middle East casts a shadow over the economy

Associated Press  

FRANKFURT, Germany — The European Central Bank left interest rates unchanged Thursday for the first time in over a year as the Israel-Hamas war spreads even more gloom over already downbeat prospects for Europe’s economy. She reiterated that high rates would help drive back inflation to the bank’s goal of 2% if “maintained for a sufficiently long duration.” She would …

Europe's central bank is set to halt rate hikes as the Mideast war casts a shadow over the economy
1 year, 1 month ago

Europe's central bank is set to halt rate hikes as the Mideast war casts a shadow over the economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The European Central Bank is …

Germany, once the envy of the world, is now its worst-performing major developed economy. Why?
1 year, 3 months ago

Germany, once the envy of the world, is now its worst-performing major developed economy. Why?

LA Times  

Evonik Industries, a specialty chemicals company based in Essen, Germany, operates this plant in the nearby town of Marl. Germany risks “de-industrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, the CEO of major German chemical company Evonik Industries. “We’re in a situation where we’re …

Germany risks becoming sick man of Europe, Deutsche Bank chief warns
1 year, 3 months ago

Germany risks becoming sick man of Europe, Deutsche Bank chief warns

The Telegraph  

Germany will become the sick man of Europe if it fails to reinvent itself, the chief executive of Deutsche Bank, the country’s largest lender, has warned. Christian Sewing told an audience in Frankfurt that the continent’s largest economy was becoming complacent after more than a decade of strong growth before the pandemic. Mr Sewing said: “We are not the sick …

Germany went from envy of the world to the worst-performing major developed economy. What happened?
1 year, 3 months ago

Germany went from envy of the world to the worst-performing major developed economy. What happened?

Associated Press  

ESSEN, Germany — For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports. Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to …

Once a global ideal, Germany's economy struggles with an energy shock that's exposing longtime flaws
1 year, 3 months ago

Once a global ideal, Germany's economy struggles with an energy shock that's exposing longtime flaws

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Germany risks “deindustrialization” as high energy costs and government …

German economy sinking in recession in 2023, predicts European Commission
1 year, 3 months ago

German economy sinking in recession in 2023, predicts European Commission

Live Mint  

Bearing the brunt of high inflation driven by factors like Russia-Ukraine crisis, German economy is expected to contract in 2023, predicted European Commission on Monday. The recent cut in forecast has come at a time when Euro's biggest economy is facing high inflation and the spill over effect of Russia-Ukraine war. Euro zone expected to grow slower, says EC The …

Why Germany is getting the 'sick man of Europe' label again
1 year, 3 months ago

Why Germany is getting the 'sick man of Europe' label again

Firstpost  

Germany has experienced two consecutive quarters of contraction – which fulfills the technical definition of a recession. Carsten Brzeski, global head of macro at ING, said: “Both the short-term and the longer-term outlook for Germany looks anything but rosy.” Weak purchasing power, thinned-out industrial order books, a slowdown in the Chinese economy and the impact of the most aggressive monetary …

German central bank sees the economy stagnating again in the 3rd quarter
1 year, 4 months ago

German central bank sees the economy stagnating again in the 3rd quarter

Associated Press  

BERLIN — Germany’s central bank anticipates that the country’s economy, Europe’s biggest, will be more or less stagnant again in the current quarter — adding to a string of weak performances. German gross domestic product stagnated in the second quarter after declining in both of the two previous quarters as the country struggled with high energy prices, rising borrowing costs …

Europe’s economy grows a bit after months of stagnation. But rate hikes are weighing on businesses
1 year, 4 months ago

Europe’s economy grows a bit after months of stagnation. But rate hikes are weighing on businesses

Associated Press  

FRANKFURT, Germany — Europe’s economy has grown modestly after months of stagnation, but higher interest rates designed to fight inflation are casting a shadow as they make it more expensive for households and businesses to borrow, invest and spend. Europe’s largest economy, Germany, struggled in the second quarter, recording zero growth after two straight quarters of falling output as it …

Germany used to be the world’s export powerhouse. Now, it’s not growing. What happened?
1 year, 4 months ago

Germany used to be the world’s export powerhouse. Now, it’s not growing. What happened?

Associated Press  

FRANKFURT, Germany — The German economy is still failing to grow, figures showed Friday, as the country that should be the industrial powerhouse for all of Europe struggles with high energy prices, rising borrowing costs and a lagging rebound from key trading partner China. It comes after the International Monetary Fund forecast this week that Germany would be the globe’s …

Germany used to be the world's export powerhouse. Now, it's not growing. What happened?
1 year, 4 months ago

Germany used to be the world's export powerhouse. Now, it's not growing. What happened?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The German economy is still …

British economy will outperform Germany this year, IMF admits
1 year, 4 months ago

British economy will outperform Germany this year, IMF admits

The Telegraph  

Britain will outperform Germany this year, according to the International Monetary Fund, after its worst fears for the UK economy failed to materialize. The IMF expects the UK economy to grow by 0.4pc this year, it said on Tuesday, confirming predictions published in May as part of its annual economic healthcheck. The IMF said the Windsor Framework agreement announced by …

Europe’s economy shrank. For households that are hurting, it’s just numbers
1 year, 6 months ago

Europe’s economy shrank. For households that are hurting, it’s just numbers

Associated Press  

LONDON — The European economy contracted slightly at the end of last year and beginning of 2023, revised figures showed Thursday, underlining the impact of the loss of Russian natural gas and high inflation on consumer spending. “Maybe before I used to buy more products I didn’t need, like potato chips for example,” Milo Taneron, a 26-year-old youth social worker, …

Germany economy shrinks in first quarter, signaling one definition of recession
1 year, 6 months ago

Germany economy shrinks in first quarter, signaling one definition of recession

Associated Press  

BERLIN — The German economy shrank unexpectedly in the first three months of this year, marking the second quarter of contraction that is one definition of recession. Two consecutive quarters of contraction is a common definition of recession, though economists on the euro area business cycle dating committee use a broader set of data, including employment figures. Employment in the …

Europe's largest economy succumbs, Germany declares recession
1 year, 6 months ago

Europe's largest economy succumbs, Germany declares recession

Firstpost  

Germany slipped into recession after its economy shrank in the first three months of 2023, marking the second quarter of contraction, country’s statistical office said on Thursday. The gross domestic product of Europe’s largest economy declined by 0.3 per cent in the period from January to March. Initial estimates had indicated that the GDP would remain stagnant at zero growth, …

Germany's GDP shrinks by 0.3% in first quarter to put Europe's biggest economy into recession
1 year, 6 months ago

Germany's GDP shrinks by 0.3% in first quarter to put Europe's biggest economy into recession

The Hindu  

New figures show the German economy suffered an unexpected dip in the first quarter of this year, putting the country formally into recession. Data released May 25 by the Federal Statistical Office shows Germany's gross domestic product, or GDP, down by 0.3% in the period from January to March. The figures are a blow to the German Government, which last …

Germany sinks into recession – as UK avoids one
1 year, 6 months ago

Germany sinks into recession – as UK avoids one

The Telegraph  

Soaring energy prices have pushed Germany into recession while Britain has escaped one, upending the forecasts made by economists at the start of the year. Europe’s biggest economy shrank 0.3pc in the first three months of 2023, revised figures showed, following a contraction of 0.5pc at the end of last year. In the last year, food prices in Germany rose …

Europe’s economic outlook brightens a little after avoiding recession. But inflation still squeezes
1 year, 7 months ago

Europe’s economic outlook brightens a little after avoiding recession. But inflation still squeezes

Associated Press  

FRANKFURT, Germany — The European Union’s executive body raised its economic growth forecast, saying Europe had dodged a winter recession that was feared amid an energy crisis but warning that stubbornly high inflation is likely to keep hurting the economy by sapping people’s ability to spend. The outlook for the 20 countries using the euro currency improved to growth of …

Europe’s economy barely grows as inflation pinches consumers
1 year, 7 months ago

Europe’s economy barely grows as inflation pinches consumers

Associated Press  

FRANKFURT, Germany — The European economy scraped out meager growth in the first three months of the year, barely gaining momentum as stubborn inflation raises the price of groceries and erodes people’s willingness to spend paychecks that are failing to keep pace. Friday’s less-than-stellar increase of 0.1% from the previous quarter follows disappointing growth estimates from the U.S., which kept …

German government doubles 2023 growth forecast to 0.4%
1 year, 7 months ago

German government doubles 2023 growth forecast to 0.4%

Associated Press  

BERLIN — The German government on Wednesday doubled its growth forecast this year for Europe’s largest economy after the country made it through the winter without major energy problems. The new government outlook for 2023 is a bit more optimistic than that of a group of four leading German economic research institutes, which earlier this month forecast growth of 0.3%. …

British economy will take a smaller hit in 2023 than previously anticipated, says IMF
1 year, 8 months ago

British economy will take a smaller hit in 2023 than previously anticipated, says IMF

Firstpost  

Britain is no longer the only Group of Seven economy set for a fall in GDP this year as Germany too is now expected to shrink by 0.1%, the IMF global forecasts indicated. After narrowly avoiding recession in 2022, Britain’s economy has shown some signs of resilience in early 2023 London: Britain is expected to take a smaller economic hit …

German factory orders up strongly, add to promising signals
1 year, 8 months ago

German factory orders up strongly, add to promising signals

Associated Press  

BERLIN — Factory orders in Germany surged in February, posting their third successive increase in another promising sign for Europe’s biggest economy, official figures showed Wednesday. Last week, a closely watched monthly survey of managers by the Ifo institute showed German business confidence rising for the fifth consecutive month to its highest since February 2022, the month Russia launched its …

Europe scrapes out economic growth by dodging gas disaster
1 year, 10 months ago

Europe scrapes out economic growth by dodging gas disaster

Associated Press  

FRANKFURT, Germany — Europe’s economy scraped out meager gains at the end of last year as galloping inflation fed by high energy prices and Russia’s invasion of Ukraine deterred people from spending in shops and restaurants. He added that “the positive reading could mask underlying weakness in domestic demand” and that “private consumption is likely to have contracted.” “The main …

German economy shrank 0.2% in Q4, worse than expected
1 year, 10 months ago

German economy shrank 0.2% in Q4, worse than expected

Associated Press  

BERLIN — Germany’s economy shrank by 0.2% in the fourth quarter compared with the previous three-month period, official figures showed Monday. In the fourth quarter, “surging inflation weighed on consumers’ real purchasing power and concerns abounded about a possible acute gas shortage during the winter,” Timo Klein, principal economist at S&P Global Market Intelligence, wrote in a research note. Germany’s …

Germany sees brighter outlook for Europe’s largest economy
1 year, 10 months ago

Germany sees brighter outlook for Europe’s largest economy

Associated Press  

FRANKFURT, Germany — The German government on Wednesday said it expects to eke out economic growth this year instead of a decline as Europe’s largest economy manages its energy divorce from Russia and shells out support for consumers and businesses hit by higher energy costs. The improved outlook “didn’t fall from heaven — we accomplished it, this country accomplished it.” …

Germany will not fall into recession, insists Scholz
1 year, 11 months ago

Germany will not fall into recession, insists Scholz

The Telegraph  

Germany will avoid a recession this year, Chancellor Olaf Scholz has insisted, despite the energy crisis which has ravaged its economy. Mr Scholz said that new liquefied natural gas terminals on the Baltic and North Sea coasts would help cushion the blow from the energy crisis on Germany’s crucial manufacturing sector. “I’m absolutely convinced that this will not happen – …

European Central Bank: Recession ‘has become more likely’
2 years, 1 month ago

European Central Bank: Recession ‘has become more likely’

Associated Press  

FRANKFURT, Germany — The European Central Bank sees an increased likelihood of a recession in the 19 countries that use the euro currency, warning that soaring energy prices and high inflation fed by Russia’s war in Ukraine have raised risks for bank losses and turmoil on financial markets. As the bank released its twice-yearly assessment of eurozone financial stability on …

German economy to shrink in 2023, government advisers expect
2 years, 1 month ago

German economy to shrink in 2023, government advisers expect

Associated Press  

BERLIN — The German government’s panel of independent economic advisers forecast Wednesday that Europe’s biggest economy will shrink by 0.2% next year. But a weak winter, with gross domestic product declining in the last months of the year and in the first three months of next year, is still widely expected. The advisers’ forecast of 1.7% growth this year and …

Germany sees unexpected growth in 3rd quarter; inflation up
2 years, 1 month ago

Germany sees unexpected growth in 3rd quarter; inflation up

Associated Press  

BERLIN — The German economy grew in the third quarter, an unexpectedly positive performance powered largely by private spending, official figures showed Friday. “The German economy managed to hold its ground despite difficult framework conditions of the global economy, with the continuing COVID-19 pandemic, supply chain interruptions, rising prices and the war in Ukraine,” the statistics office said. “Looking ahead, …

German government: Economy to shrink in 2023 as war bites
2 years, 2 months ago

German government: Economy to shrink in 2023 as war bites

Associated Press  

BERLIN — The German government on Wednesday slashed its growth forecast for this year and predicted that Europe’s biggest economy would shrink in 2023 as it deals with the fallout from Russia’s war in Ukraine, including Moscow cutting off natural gas supplies. Habeck said that despite the grim growth projections, employment would likely remain “robust.” Russian imports once accounted for …

Discover Related