Current economic conditions are not so good for the economic powerhouse of Europe - Germany. Industrial production figures fell 1.1% month-on-month in September, against analysts' expectations of a 0.5% rise. Germany's exports also fell significantly following the slowdown in China and other developing markets this year, and their manufacturing orders dropped by 1.7% in the third consecutive month.
Meanwhile, the Spanish economy is recovering strongly from its housing crash and debt crisis. The country's industrial output beat expectations, rising 3.8% year-on-year in September instead of the predicted 2.8%.
http://www.businessinsider.com/german-industrial-production-falls-in-september-2015-11
Meanwhile, the Spanish economy is recovering strongly from its housing crash and debt crisis. The country's industrial output beat expectations, rising 3.8% year-on-year in September instead of the predicted 2.8%.
http://www.businessinsider.com/german-industrial-production-falls-in-september-2015-11
4 comments:
There always seems to be some major country dropping (like Germany or the US) and other countries rising (like Spain or China). There will always remain a fluctuating market between countries Germany is simply in the midst of a decline, and although it is not ideal they may bounce back quicker then the decline. And while Germany's economy, which is led by exports, has no real backup plan for a drop in international trade they are still heavily tied to the Euro and will remain a strong competitor, a little slowing of the economy never whipped out a country. Germany will simply have to make some cut backs on other spending, and maybe a little jumpstart on their economy.
Plus firms rely heavily on one another, they will make it through this.
The slowdown in Germany has interesting implications for all of the EU because Germany is essentially their backbone. The reason the EU decided to put the ECB in Germany was because they were the most responsible financially and also were the wealthiest. For a Union that is experiencing great ordeals with Greece it is the opposite of reassuring that Germany is not doing well. However, it is reassuring to see that Spain is recovering nicely.
This is not a good sign for Germany, but it is a good sign for the EU that Spain is recovering. Although Germany is not performing well right now, they are powered by their exports and they will recover with China and the global economy recovering too. One of the things to watch is how Germany performs when the United States increases the interest rate.
Since we now live in a world that one country's economy gets affected by another country's economy, it makes sense that Germany would get affected because of China. I agree with everyone that Germany is the backbone of the EU and that the other countries will get affected if Germany is able to make a turnaround.
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