From Europe’s weak link locomotive, according to the London newspaper, which talks about the risk of “technical recession”
“The prospects of the Germany I am ‘fragile‘, as the German finance minister said Christian Lindner“. This is what we read in an analysis of Financial Times entitled “From weak link locomotive ofEurope: L’economy Germany falters. “The” largest economy in Europe, “reads the British newspaper,” is experiencing one shock series which negatively affect its economic situation “. In addition to the surge ininflation and to the rise of energy prices“persistent problems on the supply chains it’s a weaker global demand they weigh heavily on the industrial sector “. The most worrying aspect is” how widespread the weakness of the economy is “. If in other phases services but not industry have suffered, and vice versa, now” this weakness affects every sector “.
While “ItalySpain and France – writes the FT – have registered one stronger than expected growthGermany has to rely more on domestic demand thanks to a tourism-driven boom, but with consumers struggling with very high inflation, spending and confidence have weakened. The retail sales they fell by 8.8% compared to last year: the largest reduction ever recorded “.
Between the first and second quarter, highlights the London daily, Germany “came to a halt, while theeurozone overall it grew by 0.7%. Last month theIMF has revised down German growth for 2023 from 1.0% to 0.8%, the largest downward revision of all other countries. “The country’s economy is currently so weak that many” fear a technical recession“.