Key issues

Europe: economic and political Outlook

Germany: why is the European locomotive losing steam?

• The German economy is likely to go into recession this quarter due to the shock of global uncertainty, which is eroding its foreign sector, and due to the crisis in the automotive sector. • The slowdown in GDP growth of Germany’s main trading partners accounts for 70% of the decline in its exports and a third of the fall in its industrial production. • Germany has been more affected than its European neighbours by the slowdown in international trade, as its economy is more open and more integrated into...