An article published by CNN Business discusses the negative impact that the decline in China's economy due to the coronavirus could have on Europe's economy. At the end of 2019, Germany's economic growth came in at a worryingly low 0.6% due to struggles in the auto industry, a huge player in German GDP. This concern now widens as China is one of Germany's largest partners in this industry. There is also added stress because of the U.S.-China trade war and Brexit, that could also impact auto sales. Before the outbreak of the coronavirus, Germany was set to increase its economic growth in 2020. However, now that the extent of the virus is still unclear, it is unlikely for the economy to improve. Experts argue that a recession is possible in the coming years.
Do you believe that the impact of the coronavirus could influence recession in Germany or other countries as the article states?
https://www.cnn.com/2020/02/14/business/europe-gdp-germany/index.html
4 comments:
I think it is very possible that the corona virus can influence a recession in Germany. However, we are still early in the year and I disagree with the conclusion that it is impossible for Germany to achieve economic growth. There are already treatments for the Coronavirus underway.
Like what happened in 2008 when the US went through the great recession, I believe that the slowing of China's economy is going to impact the world economy as a whole. Of course, some countries, like Germany, will be affected more then others. There really is no way to tell what will happen but one thing that is for sure is that we are defiantly going to see some slowled growth globally.
In my opinion, as Chinese economic growth slows, it is very possible that this decline and the economic trends associated with the Coronavirus will slow the German economy and the Global economy as a whole. Though we will not know the real economic effects of the virus for some time it is very likely that these slowing economic trends will continue in the meantime.
I could absolutely see the coronavirus impacting and causing a wide range of economic shocks across the world. As they are one of the largest economies in the world, it would only make sense for their struggles to show up in other places. Hopefully this will lead to other countries emerging and growing due to this, but it is going to be interesting to watch what is going to happen.
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