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Can Germany Survive the Trade War?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
Germany’s economy has suffered due to declines in exports in the industry and automobile sectors. German manufacturers are presented with increasing struggles as the U.S.-China trade war over tariffs has led to a global economic slowdown and Britain’s exit from the EU leads to greater turmoil. Germany’s GDP declined by 0.1% overall, and the government is pressured with providing greater fiscal stimulus. The economy ministry stated that fiscal action is necessary to prevent Germany from falling into a technical recession. Germany, Europe’s biggest economy, is a necessary component to the economic growth and standing of its neighbors. Consumer demand and spending has been strong, helping to supplement the economy but is beginning to wane.